Soeharto family web spans 120 Pertamina associates
Soeharto family web spans 120 Pertamina associates
JAKARTA (JP): State oil and gas company Pertamina has
identified at least 120 companies operating as its contractors or
suppliers which are owned by former president Soeharto's family
and cronies.
Pertamina president Soegianto said yesterday the number could
be higher as the listing of companies which landed projects from
Pertamina through political connections and other unsavory
business practices was still tentative.
"The final list will be sent to Minister (of Mines and Energy
Kuntoro Mangkusubroto) within days," Soegianto said.
Kuntoro recently announced the government would review all
contracts between Pertamina and shipping, exploration and trading
companies to improve its efficiency.
He ordered Pertamina to register all companies which had
gained contracts through collusion, corruption and nepotism.
Kuntoro said yesterday he would give Pertamina freedom to
decide if contracts involving Soeharto's children and friends
could continue.
He emphasized that any decision should be aimed at improving
the company's efficiency.
"Pertamina will decide if a project will continue or not. I
will only give a directive (that any decision must be made) to
improve efficiency," Kuntoro said.
Pertamina has long been blamed for inefficiency due to alleged
rampant internal collusion and corruption.
Analyst say corruption in the company mainly resulted from the
deep involvement of Soeharto's family and cronies in its
operation.
The extensive Soeharto web enjoyed for decades exclusive
rights to Pertamina's operation, including imports of fuel and
crude oil, shipment of crude oil and liquefied natural gas (LNG)
and development of LNG plants.
Pertamina was obliged to buy imported fuel and crude oil from
Perta Oil Marketing Ltd and Permindo Trading Oil Co Ltd for
decades.
Pertamina has a 30 percent stake in Perta, while the remainder
is owned by Soeharto's son Hutomo "Tommy" Mandala Putra.
The state company has a 35 percent stake in Permindo, while
the remainder is owned by President Soeharto's son Bambang
Trihatmodjo, Soeharto's cousin Sudwikatmono, Nirwan Bakrie and
Roosano Barack.
Tommy also conducts business with Pertamina in the shipment of
fuel, LNG and crude oil through its publicly listed company
Humpuss Intermoda Transportasi.
In its 1997 annual report, Humpuss said Pertamina chartered
nine tankers from its fleet to transport crude oil and another
three tankers to carry liquefied natural gas (LNG) to export
markets. The charter period of the tankers range from 10 to 12
years.
Some of the tankers are co-owned by Japanese investors.
Kuntoro said foreign investors who formed partnerships with
Soeharto's family and friends would have to accept reviews of
their status.
"That's the risk of a marriage," he said. (jsk)