Pertamina can save Rp 10 trillion through efficiency measures: Baihaki
Friday, October 10 2003 - 04:42 AM WIB
Baihaki told Kompas newspaper on Thursday in Jakarta that the efficiency measures would not only save money for Pertamina but also boost its income.
He said he tried to improve the firm's efficiency during his term as Pertamina's president but he could not finish the job.
For example, according to Baihaki, Pertamina still spends 50 percent more on drilling activities compared to the drilling costs of the production sharing contractors. Moreover, Pertamina is still able to further cut down the maintenance costs of its refineries.
He also said Pertamina's new management could also review its contracts with the distributors of high-octane gasoline Pertamax and Pertamax Plus.
He said the distributors get unfairly high margin for transporting the fuel.
He said during his term, he tried to review the contracts with the distributors but he faced strong resistance from Pertamina's board members who he believed colluded with the distributors.
According to Baihaki, there are between 12 and 13 Pertamax and Pertamax Plus distributors in the country, but he did not specify their identities. It is well known by the public that many politically-connected people, including President Megawati Soekarnoputri's husband Taufik Kiemas, are involved in fuel distribution and retail business.
Baihaki also criticized the corrupt practices of certain Pertamina officials who impose illegal levies on those who seek for licenses to establish gas stations.
Baihaki handed over Pertamina's leadership to Ariffi Nawawi last month. The government's decision to reshuffle the management has surprised many people given the fact that Baihaki is known as a clean figure. (*)