Pertamina told to delay project

Pertamina told to delay project

PALEMBANG, South Sumatra: The South Sumatra legislature has
demanded that a nitrogen plant repair project worth Rp 20 billion
be suspended due to alleged collusion conducted by the secretary
general of the Plaju office of state-owned oil and gas company PT
Pertamina.

M. Sani Indawan, the chairman of Commission D of the South
Sumatra Provincial Legislative Council said on Tuesday that M.
Naibaho had allegedly awarded the project to PT Buana Cakra
Putralindo directly without open bidding, as stipulated by
Presidential Decree No. 18/2000.

"Yes, we demanded the project be suspended until everything is
clear," Indawan said, adding that it was the result of the June 8
meeting between the legislature and the general manager of
Pertamina, M. Naibaho.

Naibaho has denied the allegation, saying that under emergency
conditions, a project could be directly awarded to a contractor.
He did not elaborate upon what he meant by an emergency.

The nitrogen plant belongs to Pertamina refinery unit III in
Plaju, Palembang.

The plant exploded on April 16 this year and has caused a
monthly average of Rp 630 million in financial losses to
Pertamina. (33)