Pertamina revamps crude oil tender, cracks down on corrupt officials
Saturday, November 11 2000 - 01:00 PM WIB
State oil and gas company Pertamina was revamping the bidding process for the imports of crude oil and launching a campaign to crack down on its corrupt officials, the company's president Baihaki Hakim said.
Baihaki said on Thursday during the meeting with the House of Representatives' Commission VIII, which oversees among others mines and energy affairs, that measures were taken as part of the company's restructuring program.
He said until recently, the international tender for the imports of oil for Pertamina was carried by the company's foreign marketing section in a system which is susceptible to collusive practices.
The tender for the imports of crude oil is now being carried out by a joint team comprising officials from various directorates of the company, Baihaki said.
Pertamina has prepared a room at its headquarters where bidders could send their bidding proposals through online transmission.
He said the room was locked that nobody could enter except for the team. The team will decide on the winners of tender based on the price proposal sent to the room.
Pertamina exports some of its oil but it also imports about 70 millions of crude oil per year to feed some of its refineries, which have been designed to process certain types of oil, which are not produced in Indonesia.
The state company imports among others Arabian Light Crude (ALC) from Saudi Arabia; Iranian Light Crude (ILC) from Iran; Dulang, Miri and Labuan crudes from Malaysia; Jabiru, Cooper Basin, Harriet, Barrow Island, Skua and Varanus crudes from Australia; Qua Iboe, Brasslight, Bonny Light Crude from Nigeria; Nanhai and Xi Jiang crudes from China; Sarir crude from Libya; Bach Ho crude from Vietnam; Badin crude from Pakistan; Maui crude from New Zealand.
Baihaki also said in September this year, Pertamina formed a team comprising officials from the company's inspectorate, financial directorate, and human resources office to crack down on corrupt officials of the company.
He said in the past, Pertamina could not quickly take actions on its corrupt officials due to the bureaucratic system applied by the company for the handling of corruption.
Pertamina was seeking to cut the bureaucratic procedure by allowing the anti-corruption team to directly report to him, Baihaki said.
"After working for one month, the team has made a long list of corruption cases that need follow-up. Pertamina's president has asked the team to select five top cases that should be followed up and be announced to the public," Baihaki said.
Pertamina has been long perceived as a corrupt company due to the deep involvement of former President Soeharto's family and cronies in its business.
After the resignation of Soeharto in 1998, the state company announced that it had entered into 159 contracts involving Suharto's family and cronies. (Epin and Godang)