Pertamina asked to take over Nusamba shares
Wednesday, March 8 2000 - 04:00 AM WIB
The House of Representatives (DPR) has given three months Pertamina to take over the ownership of PT Nusamba in PT Tugu Pratama Indonesia in three months to totally root out traces of corruption, nepotism and cronyism (KKN) in the state oil company.
The recommendation was issued following a hearing between the House members and the state oil company's executives on Monday.
The chairman of the House commission VIII Irwan Prayitno said that the withdrawal of the state oil company's ownership from the insurance company should have been made soon after the downfall of former president Soeharto as part of the state oil company's program to eliminate all traces of KKN practices.
Both companies have agreed about the withdrawal but it could not be realized due to legal technicalities.
Pertamina, which was known as a symbol of corruption during the Soeharto administration as most of its business owns a 45 percent stake in Tugu Pratama. Nusamba, a group of companies joinly owned by former president's family and his close friend Muhamad (Bob) Hasan owns another 35 percent and DPP holds the remaining 20 percent. The insurance company previously held an exclusive right to cover all Pertamina's insurance contracts.
Pertamina's president Baihaki Hakim agreed and promised to take over Nusamba shares in the insurance company in less than three months. (*)