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)