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sharing in governance of extractive industries

Calling Government of Indonesia to Select National Oil Company's CEO in Transparent Manner

Civil society coalition for energy and extractive industry governance reform, Publish What You Pay Indonesia, urged the government to select Pertamina’s President Director in transparent, credible, and independent manner. It’s to ensure the continuity of oil and gas governance reform in order to ensure energy security as well as encourage Pertamina to become a world-class oil and gas company.

 

Fabby Tumiwa, Director of Institute for Essential Service Reform said that it’s important to conduct selection process in transparent manner. Therefore public can learn whether the chosen candidate has honest track record and measured capacity.

 

“President Director of the biggest State Owned Enterprise (SOE) shall be free from rent seeker,” affirmed Fabby in Jakarta. Importantly, Fabby continued, the elected President Director shall have integrity and commitment to continue reform taken place in the oil and gas sector, especially the procurement of crude oil and fuel.

 

Maryati Abdullah, National Coordinator of PWYP Indonesia suggested that an independent team shall conduct open selection with fit and proper test for the replacement of the President Director of Pertamina. She added, an open process can deny the assumption that certain interest groups, publicly known as oil and gas mafia keep intervened the oil and gas SOE. “Public trust toward oil and gas SOE shall be maintained and strengthened,” underlined her.

 

According to Maryati, the President Director of Pertamina shall own following criteria. First, having integrity, sufficient capacity and fruitful experience as well as maintain his/her independency by not easily intervened by interest groups. Second, conducting business with vision through the implementation of good corporate governance which uphold efficiency and competitiveness principle. Therefore he/she can bring Pertamina to be powerful and global SOE.

 

“Pertamina will take over several oil and gas working areas whose contracts end, also face revitalization agenda of some refineries, such as in Cilacap, Balikpapan, and Dumai. Not to mention, downstream projects that’s expected to strengthen the energy security. Do not let the new President Director doesn’t have the capability to manage those huge assets”, said her.

As a notes, there are 10 oil and gas blocks whose contracts will end up to 2018, where the government has appointed Pertamina to manage the blocks, including block of Offshore Northwest Java (ONWJ),  block of Mahakam (Total E&P Indonesia), block of Attaka (Inpex Corporation), block of South East Sumatera (CNOOC), block of East Kalimantan (Chevron Indonesia Company), block of Tengah (Total E&P Indonesia), block of North Sumatera Offshore (Pertamina), block of Tuban, block of Ogan Komering and block of Sanga-Sanga.

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