Legislators warn Pertamina about conflicts of interests

Legislators Wednesday warned leaders of state oil and gas firm PT Pertamina about possible conflicts of interests within the company because its newly appointed commissioners are concurrently government officials.

They questioned why State Minister of State Enterprises Laksamana Sukardi had been appointed chief commissioner of Pertamina, and why other high-ranking government officials were given commissioner position at the company. They are Laksamana?s deputy Roes Aria Widjaya, State Budget Director General Abdul Anshari Ritonga, Oil and Gas Director General Iin Arifin Takhyan and the chairman of Indonesia Bank Restructuring Agency, Syafruddin Arsyad Tumenggung.

Pertamina?s top leaders, except Laksamana, Wednesday attended a hearing with Commission VIII of the House of Representatives in charge of energy and mineral resources, environment and science and technology. It was the first hearing between Pertamina?s new board of management and the House commission.

Pertamina got a limited liability status based on a government decree issued in September.

In Wednesday?s hearing, legislator Cecep Rukmana said Iin could find it difficult to act both as director general and as Pertamina?s commissioner.

Cecep could not understand why the director general had publicly advised Pertamina not to seek exclusive rights to operate Palmerah block in Jambi, while in fact the company was trying hard to get the concession area.

Meanwhile, another legislator, Priyo Budi Santoso feared that Laksamana could push Pertamina to arbitrarily sell its units because his office was carrying out programs of selling state assets. (leo)