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Jakarta Post

Pertamina reform requires clarity

PREMIUM
Jakarta   /   Tue, April 4, 2017   /  01:03 pm
Pertamina reform requires clarity The new president director, Elia Massa Manik, stated, as quoted by The Jakarta Post, that he had no affiliation with any political party. His remark was essential on account of the risk of political cronyism despite years of efforts to improve good corporate governance in state-owned enterprises. (JP/Jerry Adiguna)

The recent appointment of a professional figure to head state-owned oil and gas giant Pertamina may have been a move by the government to shield the company from political intervention. However, creating a politicsfree environment for a strategic firm such as Pertamina goes beyond the appointment of a nonpartisan director. The new president director, Elia Massa Manik, stated, as quoted by The Jakarta Post, that he had no affiliation with any political party. His remark was essential on account of the risk of political cronyism despite years of efforts to improve good corporate governance in state-owned enterprises. Limiting political interference by appointing professional figures to fill top management positions has long been the key prescription for Pertamina to improve its performance. It started in 1988 when the country no longer picked candidates with military backgrounds t...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.