TEMPO.CO, Jakarta - The government’s plan to liquidate PT Pertamina Energy Trading Ltd (Petral) is the right movement. For years, Petral has become a safe haven for oil and natural gas mafia. Many people enjoy the benefits from the imports of oil by Pertamina. Consequently, the company’s money has gone to waste.

It is difficult to separate oil and gas mafia from Petral because in every oil transactions happening within the company, there have always been opportunities of foul play.

Besides, for years, the authority tender to procure raw oil and fuel for Pertamina is done by Petral.

The alleged irregularity in Pertamina’s subsidiary that is based in Singapore has been suspected since 2012. At that time, former state-owned enterprises minister Dahlan Iskan learned about the accusation of commission sharing per barrel for certain people.

Unfortunately, there has not been any follow-up to address this issue.

It is now during the administration of President Joko Widodo that the commitment to fight against the long standing oil and gas mafia resurfaced. One of the efforts is by disbanding Petral.

So, to tackle this case, an anti oil and gas task force led by Faisal Basri has been established.

On the recommendation from the task force, Petra’s authority has been transferred to the Integrated Supply Chain (ISC), a Pertamina’s business unit.

Although it is a bit too late, this effort deserves our supports. Besides, the transfer has enabled PT. Pertamina to save up to US$20,000,000.

The plan to disband Petral has certainly drawn pros and cons. Nevertheless, the government does not have to hesitate proceed with the plan.

Besides, Petra’s task is now fully handled by the ISC.

A positive response came from business partners because they can now directly do the business with Pertamina.

Previously, based on the decision of Petra’s board of director, only the NOC (national oil company) that could join the tender.

This regulation gives the impression that the chain of oil procurement is short. In reality, it is quite the reverse.

Besides, NOC does not only supply oil on its own but also form other parties. This is where the mafias get involved.

As a result, the trade chain is getting longer.

However, this foul play was finally disclosed after the task force found irregularities in one of the companies in the list of Petra’s business partner, Maldives NOC Ltd.

Without source of oil, Maldives could win the tender.

It was also same with PTT (NOC Thailand), that turned out to be used only as a stepping stone in the procurement of Azeri raw oil from Azerbaijan.

Manipulating the procurement of oil through companies of foreign governments is Petral’s biggest mistake.

This illegal practice has certainly provided a big amount money to the pockets of Petral’s high-ranking officials.

The task force found that the salaries of Petral high-ranking officials are unreasonable. The salary of the President Director reaches US$44,000 per month.

This amount is far higher than that the salary of Pertamina President Director that reaches Rp200,000 per month.

The safest way to eliminate raw and oil gas mafia is by Pertamina handling the exports and imports of raw oil on its own.

That way, if Pertamina gets a discount, it will be enjoyed by the state, not by brokers.

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