Pertamina to undergo massive reorganization

State oil and gas Pertamina's management will be restructured as part of the company's new president's ambitious plan to root out corruption, collusion and nepotism, Bisnis Indonesia reported on Saturday.

Pertamina's president Baihaki Hakim said that the government and the House of Representatives had approved the reorganization plan, which would not only streamline bureaucracy procedure but also scrap ineffective divisions in a bring the company into the same level with other major oil and gas company in the world.

"We are still waiting for a Presidential decree to begin the restructuring program," he said, adding that the decree was needed to ensure that the plan would run smoothly and to avoid resistance from within and outside the company.

He promised that the restructuring program would not affect workers. "The number of workers will not be reduced through a lay-off but through a natural procedure," he said.

Meanwhile Kompas reported that the restructuring of the oil and gas company would enable the management to free itself from any intervention from outsiders especially from high-ranking government officials.

The tenders of the company's projects, which are now mostly done through secretive procedures, would be carried out transparently under the new management system, Baihaki said, adding that under the new bidding system, all bidders would receive the same treatment.

"All can join the bidding. But those carrying recommendation letters from high ranking officials will be disqualified," he told reporters following a meeting with Vice President Megawati Sukarnoputri.

He also promised that all information and data related to the operation and finance of the state oil company would be published so that the public would understand the real condition of the state oil and gas company. (*)