Sutanto named Pertamina commissioner

The Jakarta Post, ,  Jakarta   |  Fri, 01/09/2009 10:56 AM  |  Business

The government appointed Thursday former National Police chief Gen. (ret) Sutanto as new chief commissioner for state oil and gas company PT Pertamina after former military commander Gen. (ret) Endriartono Sutarto resigned from the post late last year.

As State Minister for State Enterprises Sofyan Djalil is still on an overseas trip, no officials at the ministry are willing to give the reasons behind Sutanto's appointment.

There is speculation that the posting of Sutanto is more to do with the balance of power between President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla in placing their trusted men to manage Pertamina, rather than any professional objectives.

Pertamina president director Ari Sumarno is believed to be closer to Kalla than Yudhoyono, forcing the president to place oil and gas bureaucrat veteran Umar Said, a top member of Yudhoyono's 2004 election campaign, as commissioner since 2005.

However, Sutanto dismissed allegations that his appointment was aimed at keeping an eye on Kalla's placed men in Pertamina rather than professionally looking out for the company's interests.

Sutanto, who retired as police chief late last year, pledged to prevent any fuel supply shortages.

"We will push Pertamina management so that they can work better as a team. The company is very strategic and is the country's backbone in fulfilling the people's needs," he said.

Yudhoyono slammed Pertamina Monday for "making excuses" about the recent scarcity of Premium gasoline and diesel, saying the management should accept full responsibility for the debacle.

As the sole distributor of subsidized fuels in the country, Pertamina has come under severe criticism amid a spate of recent fuel shortages.

Pertamina came under fire recently because of the shortage of 3-kilogram liquefied petroleum gas (LPG) canisters which made a mockery of the company's drive for the public to convert from kerosene to LPG gas.

Monday's outcry was Yudhoyono's second blow aimed at Pertamina's management. He first chided the company, headed by Ari since 2006, in mid 2008 in the context of shortages of LPG.

Speculation is also rife Yudhoyono is likely to replace Ari in Pertamina's upcoming shareholder meeting on Jan. 31 over a string of problems.

Ari earlier said he would fully accept any decision to replace him during the meeting.

 

Pertamina's unit to go public

Pertamina's insurance unit PT Tugu Pratama Indonesia is aiming to go public this year by offering 20 percent to 30 percent of its shares in the stock market.

The company, booked a net profit of around Rp 48 billion (US$4.4 million) as of September last year.

"We will utilize the cash gained from the IPO (initial public offering) to increase our working capital," Pertamina finance director Frederick Siahaan said Thursday.

According to Frederick, Pertamina needs to divest several of its subsidiaries, including its food catering, property and construction companies, in order to be more focused on its core operations.

PT Elnusa, another Pertamina subsidiary in the oil and gas field, went public last year by offering around 20 percent of its shares to the market. (dis)

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.