Interview with Baihaki

Former president of Caltex Pacific Indonesia Baihaki Hakim was appointed by President Abdurrahman Wahid as new president of state oil and gas company Pertamina.

Baihaki talked to the press on his future job prior of the installation ceremony on Monday. Excerpts of the interview are as follows:

Question: How do you see problems faced by Pertamina?

Answers: As a professional, I think what is complicated can be simplified. The important thing is the strong political will on the part of the government that the performance of the national asset can be optimum.

A mess is difficult to solve. But we have to see the main problem. What is clear is the President wants Pertamina be managed professionally. Its core business is expected to be a world-class enterprise.

Q: What are you going first to do to solve the mess?

A: To be honest, the previous board of directors have made a study for a restructuring. I will study it. We shall move fast.

Actually, I was an insider. Thus (we can) move fast.

Most of the people in (the board of directors of) Pertamina are professionals and non-partisans. Thus, the worries of some people that Pertamina will become the vehicle of political parties prove wrong.

Q: Are you sure that Pertamina will be as big as Pertronas?

A: God willing ? But, it is a long process. We shall see the result, the structure or whether the foundation is strong in one year. We have to understand that the problems facing the oil industry today is different from those in the past.

There are two problems faced by Pertamina. First, efficiency problem, particularly profitability and cost structuring.

Secondly, problems related to system. I think the system should be improved. For instance, the accounting system, administration system and management. If possible (the system) will be comparable to those applied by world-class companies.

Q: As a former Caltex's employee, you are well connected with foreigners. Aren't you going to be biased in carrying out Pertamina's mission?

A: I don't think so. First, I have retired from Caltex. Secondly, as a professional, I will (professionally) do my state job in Pertamina.

Thus, the worries that I will become an accomplice of foreign investors is not true. I am an Indonesian and my mission is clearly for the national interest. We welcome foreign investors as long as it is a win-win case. Why not?

Q: Are you sure that you will get supports (from Pertamina's insiders) given the alleged rampant corruption in the company.

A: I put top priorities on human approach, also human interest. My principle is make friends not enemies.

We shall conduct restructuring, placing the right people on the right place. I want an elegant working system.

I shall be facing people who have families and aspirations. That is what Caltex taught me.

Q: Are you going to bring Caltex's working culture into Pertamina to improve its performance?

A: I think a pure Caltex's culture is impossible. I must be realistic as Pertamina has its own style and tradition. We are looking for a good synergy. (*)