Purnomo targets Pertamina in fighting KKN
Purnomo targets Pertamina in fighting KKN
Newly reappointed Minister of Energy and Mineral Resources
Purnomo Yusgiantoro has unveiled five priority programs of his
office for the rest of his ministerial term. The programs include
the eradication of corruption, collusion and nepotism. He
described the programs in a recent interview with The Jakarta
Post. Following are an excerpt of the interview.
Question: We have heard of your plan to clean the "dirt" in
the Ministry of Energy and Mineral Resources and Pertamina. Could
you elaborate on this?
Answer: It is one of the five goals I would like to achieve
during my ministerial term.
The five goals are to meet the government's macroeconomic
targets in the energy and mineral sectors, to review the existing
laws in the energy and mineral sectors, to restructure state-
owned enterprises under the ministry, including oil and gas
company Pertamina and the state electric company PT PLN, to
establish clean and good governance in the ministry, and to
support the implementation of regional autonomy.
Everybody thinks that the ministry is not good, full of
corruption, collusion and nepotism (KKN). But this is not right
because (state losses caused by) KKN in the ministry is less than
Rp 10 billion (US$1.14 million) (per year).
Most of the KKN took place in Pertamina and some in PLN. There
were 159 cases with indications of KKN that were identified in
Pertamina three years ago, but after examination, the actual
number of KKN cases were only 11.
What have you done to combat KKN, especially in Pertamina?
Pertamina has its own inspectorate general to monitor KKN.
The Development and Finance Control Board (BPKP) also has the
same function there.
Pertamina has also established a joint team with the Attorney
General's Office to solve the 159 cases. The minister of energy
and mineral resources as chief commissioner of Pertamina has
always been supportive of the team's investigations by providing
data.
We cannot monitor (KKN in) Pertamina through the ministry's
inspectorate general because the task is limited by the state
budget.
Q: Do you mean to say that you can't do much to combat KKN in
Pertamina?
A: Cases that concern violations of the law should be transferred
to the Attorney General's Office. That's the mechanism. If (the
Attorney General's Office) wants clarification on technical
aspects, we are ready to help it. But the help is limited to
technical matters.
Q: What are you going to do to prevent KKN in Pertamina in the
future?
A: We must focus on two things: system and operation. A good
system alone is not enough. It must be coupled with good
operation to bring in good results. Thus we have to focus on both
the system and operation simultaneously.
With regards to the system, we are trying to improve it with a
new oil and gas law (which is being debated at the House of
Representatives). With this law, we want to gradually tighten
competition in the industry to pressure Pertamina into improving
its efficiency.
As far as the operation aspect is concerned, we must improve
the quality of Pertamina's human resources and strengthen its
supervisory role.
I personally feel that Pertamina's chief commissioner should
not be a minister. (The position should be entrusted) to someone
who knows about the oil and gas industry well, and someone who is
professional, credible and able to supervise Pertamina as how a
chief commissioner ought to.
At present, under Pertamina's Law No. 11/1971, the minister of
energy and mineral resources is (ex officio) also Pertamina's
chief commissioner, assisted by four commissioners who are all
ministers.
Tell me which minister is not busy?
In the future, Pertamina's chief commissioner must be someone
who has a great vision and is able to manifest the vision into
actions.
Q: Do you mean the chief commissioner should work full-time for
Pertamina?
A: Yes. That's what a chief commissioner should do, especially
the chief commissioner of such a big company like Pertamina.
Furthermore, once the new oil and gas law takes effect, there
will be a transition period for Pertamina to change (into a
limited liability company), which of course needs special
consideration and measures. At the time, Pertamina should have a
chief commissioner who will be involved in the transition period.
Q: Have you told the other ministers or the President about the
idea?
A: Not yet, this idea comes from my heart as the current chief
commissioner of Pertamina. I think it's better for the minister
of energy and mineral resources to take care of his ministerial
job, to become a regulator and a bureaucrat on the macro level.
Q: Do you have an example where this idea has been implemented
well?
A: Malaysia. Tan Sri Datuk Seri Azizan Zainul Abidin is the chief
commissioner of (Malaysia's state oil and gas company) Petronas
and he doesn't have any other position outside the company. He is
someone who has a broad knowledge of the oil and gas industry,
and dedicates himself to the success of Petronas.
Q: Do we have a person like him ?
A: We have a longer history (in the oil and gas industry) than
Petronas. So, why not?
Q: Do you think Pertamina is improving?
A: This is a gradual process. I can understand that the public
wants a quick change, but it is not easy because the problems in
Pertamina are complicated. I see people in the company who have
the good will (to reform the company) and their efforts need our
support, otherwise they will not succeed. (Mochammad N.
Kurniawan and Johannes Simbolon)