Baihaki give conflicting explanation on catalyst tender for Balongan project

The president of state oil and gas firm Pertamina, Baihaki Hakim, gave conflicting explanations about catalyst tendering for Run 6 of Balongan refinery project to the minister of energy and mineral resources and to the House of Representatives' Commission VIII on energy and mining.

According to the Coordinator of the Reform Review Presidium (PPRT), Mumtaz Malik, Baihaki gave the explanation before then Minister of Energy and Mineral Resources Susilo Bambang Yudhoyono on August 23, 2000, at 8:00 a.m.

At that time, one of the things they discussed was complaints from PT Aman Multi Dinamika (AMD) filed on August 21, 2000, that stated Pertamina had violated a recommendation from the House's Commission V dated Feb. 24, 1999, and a letter from Pertamina's processing director Samto Utomo - both stipulate tendering for catalyst procurement for Run 6 of Balongan refinery.

Mumtaz said that Baihaki told Susilo Bambang that Pertamina would tender the procurement of the catalyst as required by Commission V and Samto Utomo's letter.

After meeting Susilo Bambang, Mumtaz said, Baihaki then met with the ministry's secretary general, Djoko Darmono, in which Baihaki also discussed the tendering of catalyst procurement for Balongan refinery.

Djoko confirmed to Media about his meeting with Baihaki. "It's true there was a meeting, but I forget the date."

Djoko also said that he even asked Baihaki about the influx of letters asking about the catalyst procurement. "At that time, I asked why the process was not pursued through tendering, and Pak Baihaki answered that it could be done so provided that it met all the requirements. He also said that the catalyst for Balongan required special features."

The fact is that Pertamina had made a decision on the purchase of catalyst on August 18, 2000, about a week before Baihaki met with Susilo Bambang and Djoko.

The catalyst purchase was based on Pertamina's purchasing order, signed by Balongan general manager Asyab, that appointed Chevron as the catalyst supplier with a price at US$17,686.036, with a discount of US$4,421,509.

"It means Baihaki had been lying," Mumtaz said.

Mumtaz noted that the discount was given after his PPRT lobbied Pertamina to demand a discount from Chevron. Otherwise, Chevron would not give any discount. Nevertheless, Mumtaz questioned who enjoyed such a huge discount. That must be investigated.

Another lie of Baihaki was his promise made before Commission VIII on Nov. 9, 2000, when he promised to meet with PPRT representatives to settle catalyst problems.

At that time, Commission VIII deputy chairman Antonius Rahael told the press that Pertamina must meet with PPRT representatives; otherwise the commission would demand Pertamina's reports in the next hearing slated for February, 2001.

But up until now, Baihaki had not allowed a meeting with PPRT representatives to proceed. Baihaki even once said that the problem with PPRT was more emotional than professional. (*)