Pertamina issues decree to combat corruption

State oil and gas company Pertamina?s president Baihaki Hakim has issued a decree to further combat corruption, collusion and nepotism in the country?s largest state company.

In the decree dated May 31, Baihaki detailed the practices and actions which the company?s employees should avoid in order to create a sound corporate governance in the state company and to improve its reputation that had been tainted by decades-long corruption.

Under the decree, which was made available to Petromindo.com Tuesday, all Pertamina employees are not allowed to accept any gift, money or other benefits from Pertamina?s contractors, suppliers, business partners or competitors as it could create conflict of interest.

All Pertamina employees are also barred from seeking loans from the company?s suppliers, partners or other that have business with Pertamina except for financial institutions or insurance firms.

?Employees are prohibited from requesting or accepting presents, services, benefits or special treatment form contractors or suppliers, which could or would influence the employees in carrying out their jobs on behalf of the company.

Pertamina?s employees may give presents to or accept presents from company contractors and suppliers, entertain or be entertained by them, but all these ?should be conducted in a manner compatible with ethical business practices and acceptable to the public?, the decree stated.

The decree also bars Pertamina?s employees from working for or giving service to other organizations that have business or compete with Pertamina.

Employees have to report to and seek approval from the company?s internal audit head in cases where they have to evaluate business proposals from companies which are owned by them or their families.

The approval from the internal audit head is also necessary in cases employees want to buy the company?s properties, set up companies to compete with Pertamina and its subsidiaries and buy assets which Pertamina and its subsidiaries want to buy, the decree said.

Pertamina?s employees are permitted to buy shares issued by listed companies but the number of shares are capped at one percent of the companies? total shares, the decree said (Bodega)