TEMPO.CO, Jakarta - State-owned Enterprises Minister Rini Soemarno must not allow the dispute within the management of Pertamina to become protracted. Selecting the new CEO of the largest state company in Indonesia must go ahead without delay. Rini must take her share of responsibility for the recent upheaval in the state-owned enterprise.
The problem began with Rini's decision to reorganize the Pertamina management structure, because the expansion of Pertamina's activities made it necessary to create a new position to oversee the business. The new structure had a new position: a deputy CEO, filled by Ahmad Bambang.
But instead of rendering the management more efficient, the additional executive, who was given excessive authority, resulted in the presence of 'twin suns'. Friction between CEO Dwi Soetjipto and his deputy, Ahmad Bambang, was unavoidable. Even the management was split into two factions that were at each other's throats from the time the new structure was implemented in December last year.
The disruption to the company's operations forced Rini to step in. Instead of resolving the conflict by removing the deputy CEO position the root of the problem Rini fired both Dwi and Ahmad. She also abolished the deputy CEO position.
For the time being, Pertamina is being led by Director of Gas and Renewable Energy Yenni Andayani. The Pertamina Board of Commissioners has until March to find a new chief executive.
Minister Rini should focus on finding the right person to run Indonesia's biggest company.
Reportedly, Ahmad Bambang is one of three candidates for the position. If this is true, his candidacy raises questions. His appointment as deputy CEO, according to many, was only because of his closeness to Rini. Ahmad himself now faces a problem of his own. The Attorney General's Office is investigating his possible involvement in the alleged corruption over the procurement and operation of a Pertamina Trans Kontinental ship from 2012 to 2014.
The government should ensure that the replacement CEO will not be a conduit to restore the old guard in Pertamina. President Joko Widodo promised to rid the company of the oil and gas mafia. He must keep his promise to reform the Pertamina management by appointing people with flawless track records.
The new Pertamina chief executive must be free of political interests. He or she must revert to the principal plan to build more refineries and processing facilities, as well as retaining the policy of reducing fuel imports and pursuing the goal of self-sufficiency by 2023. The new chief must also reject influence or pressure from the oil and gas mafia by making fuel trading regulations as transparent as possible.
Pertamina is a strategic industry whose income contributes 65 percent towards state revenues. The government must make absolutely certain that the company does not become a political football, let alone fall into the hands of people looking only to make money for their own interest groups. (*)
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