Merdeka.com – Civil Society Coalition Publish What You Pay (PWYP) Indonesia urged SOE Minister, Rini Soemarno to conduct an open selection of PT Pertamina (Persero) president director candidates. In addition, Rini was also asked to convey to the public the general and specific criteria of the candidate for the state-owned energy company.
A PWYP Indonesia Chair of The Board, Fabby Tumiwa asked the government to involve the Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK) as part of the selection process for Pertamina’s number one person. It was intended to prove Jokowi-JK’s commitment to be transparent in managing his government.
According to him, Pertamina as a strategic SOE in the supply of crude oil and domestic fuel has a large budget and assets are very vulnerable to political intervention and are made ‘dairy cows’ for the economic interests of various parties, especially the ruling parties.
“The Managing Director and the Board of Directors of Pertamina with integrity, professionalism and a good track record are the initial capital to block the entry of various interests who want to exploit Pertamina which harms the country and society,” he told merdeka.com in Jakarta, Sunday (16/11).
Fabby emphasized that the selection process for directors and other directors and commissioners should be used as a benchmark in the implementation of Good Corporate Governance (GCG) of SOEs in Indonesia. He hoped that the Jokowi-JK Government made a breakthrough in the recruitment process of the BUMN Directors so that their reputation and trust in SOEs would increase in the eyes of the public and the international community.
Meanwhile, PWYP Indonesia National Coordinator Maryati Abdullah said Pertamina must also be led by people who have capabilities and integrity in the oil and gas industry. In addition, strategic positions in Indonesia must be filled by people who truly have the capacity to carry out their roles following President Jokowi’s promise.
“Therefore, the SOEs Minister should have the same vision as the president in the selection process of Pertamina’s Managing Director. There must be no public suspicion, Pertamina’s Managing Director will only become a person who is put in a place for certain interests, “Maryati said.
Pertamina’s Managing Director must also be able to cut oil trade rents and fuel procurement that are not effective, including making a transparent calculation of fuel subsidies, especially in the aspect of production costs (cost) so that the public can rationalize the price of fuel consumed by the public.
Based on financial and operational reports, Pertamina in the first half of 2014 was able to produce 520,360 barrels of oil equivalent per day (bopd). Up 11.9 percent compared to the same period last year.
In 2014, Pertamina targets revenues of USD 79 billion. The revenue figure is around 6 percent higher compared to the 2013 revenue prognosis. In addition, Pertamina’s 2014 net profit target is USD 3.44 billion.
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