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)