Selasa, 02 Desember 2014

PERTAMINA TO REFORM OIL BUSINESS, INCREASE PRODUCTIVITY

 By Andi Abdussalam  
          Jakarta, Dec 2 (Antara) - State-owned oil and gas company Pertamina is expected to carry out reforms in the oil sector and increase productivity under its new President Director Dwi Soetjipto.
         "We hope the new Pertamina chief will be committed to reforming the oil sector, increasing productivity and fighting the oil and gas mafia in the country," Sofyan Zakaria, the director of Puskepi, a non-governmental organization advocating pro-public policies, said. 
    He stated that a president director of PT Pertamina must have strong leadership qualities, reliable managerial capabilities, high integrity, honesty and commitment to help the government fight oil and gas mafia.

         Observing that Dwi Soetjipto seems to have met all the requirements, Sofyan said Dwi may possibly not command oil and gas technicalities but other directors and the senior vice-president of Pertamina, whose expertise has already been proven, can help him there.
        "I hope Dwi will carry out Pertamina's transformation," he remarked.
         State Enterprises Minister Rini M Soemarno installed Dwi Soetjipto as president director of Pertamina for the 2014-2019 period last Friday.

 
         Dwi Soetjipto, who was the president director of state-owned cement producer PT Semen Indonesia, was sworn in at the state enterprises ministry in the presence of Energy and Mineral Resources Minister Sudirman Said.
         Following his inauguration, Dwi Soetjipto expressed readiness to work with the Corruption Eradication Commission (KPK) and State Audit Board (BPK) to ensure transparency in carrying out reforms in the state oil and gas company.
         "I welcome the measures of KPK, BPK, and other related agencies to make this company more transparent. I honor the principles of good corporate governance," he stated at a press conference.
         On the occasion, President Joko Widodo, better known as Jokowi,  expressed hopes that that the management of Pertamina will become stronger with the appointment of Dwi Soetjipto as its new president director.
        "A strong management is indeed needed there (in Pertamina)," he said at the State Palace in Bogor, West Java, last Friday.
         He noted that Dwi Soetjipto's appointment was part of the government's efforts to improve the management of oil and gas sector and follows the earlier appointment of former Corruption Eradication Commission chairman Amin Sunaryadi as head of upstream oil and gas regulator SKK Migas and Faisal Basri as oil and gas management reform chief.
         "We have Amien in SKK Migas, Faisal Basri in the reform team, and now, a new management in Pertamina. We hope they form a better synergy," the President had bserved.
         Minister Rini has also appointed Ahmad Bambang (from Pertamina), Yenni Andayani (from Pertamina), and Arif Budiman (a professional from McKinsey) as directors of Pertamina.
         At a press conference after Dwi's inauguration, Rini stated that Dwi Soetjipto was the right person for the post as he was capable of accelerating Pertamina's transformation.
        "Dwi Soetjipto as the best son of the nation, and with all his experience in managing a corporation, is expected to improve Pertamina. Pak (Mr) Dwi's appointment is in line with President Joko Widodo's directives with regard to accelerating the transformation of Pertamina into a world class company and improving transparency in downstream to upstream levels," Minister Rini M Soemarno noted.
         To improve the performance of Pertamina, Dwi has outlined three goals and expressed his readiness to implement them for strengthening the company and making it the spearhead of the government's program to establish Indonesia's sovereignty in the energy sector.
         The first goal, which is short-term, is that Pertamina must achieve efficiency and increase productivity in all business processes from downstream to upstream levels.
         The second goal is to implement President Joko Widodo's directives to carry out serious reforms in Pertamina, including eliminating several irregularities. The third goal is to improve the supply chain between spot markets and medium and long-term contracts as well as storage capacity to ensure the optimum management of supply-chain process in the future.
         "We believe if Pertamina is managed well and all parties concerned work hard, it will become our pride," Dwi pointed out.
         In the meantime, Minister Sudirman Said praised Dwi as a mature person and a strategic thinker. "Managing Pertamina is not a light job. So, a figure like Dwi is needed to continue reforms in the company," he noted.
         "We will prevent and suppress leakages and review our supply chain by managing it optimally," he added.
         Pertamina must become the spearhead of the government's vision and mission in the field of energy and in improving performances in upstream, midstream, and downstream levels, the minister emphasized.
         Regarding the upstream and downstream levels, Ardiansyah, the president director of Pertamina EP, which is a subsidiary of Pertamina, said Swi Sutjipto must be able to work fast in resolving oil and gas problems in the upstream and downstream areas.
         According to him, an important job that has to be done and resolved is production in the upstream level. Pertamina had failed to meet its production target in the last three years.
        "Its performance in financial terms has not been too bad, yet it has always been below standard," Ardiansyah said. Therefore, he expressed hope that the new president director of Pertamina will adjust fast and become more agile to drive the company in the right direction.
         "We hope he will work faster and we will see whether he will take the company to a different direction or just follow what we have been doing so far," remarked Ardiansyah.
         Head of the Gas and Oil Engineering Laboratory of the University of Gajah Mada, Bardi Murrachman, pointed out that the new president director of Pertamina must be able to meet the people's need for energy.
         The country is facing a decline in its oil and gas production. In the past, Indonesia had been able to produce one million barrels of oil per day when it only needed less than 800 million barrels per day.
         "Now, our need for oil has reached 1.3 million barrels a day. This has forced the country to import some 500-600 barrels of crude oil per day to cover the shortage," he said.***2***

(T.A014/INE)
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(T.A014/A/BESSR/A. Abdussalam) 02-12-2014 18:58:

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