Pertamina urged to stop cooperation with Panutan

Monday, July 31 2000 - 02:30 AM WIB

The Center for Reform Study (Pakar) has urged state oil and gas firm Pertamina to stop its cooperation with fuel distributor company PT Panutan Selaras for the latter's alleged mixing of premix fuel with other substance.

In a letter to no. 03/vii-Adv/2000 addressed to Pertamina, Pakar executive director Arnauly Aminullah supported Pertamina's move to suspend Panutan's distributorship rights.

"Pertamina's move to suspend PT Panutan Selaras is positive. Therefore Pertamina needs to follow it up with the heavier penalty by not giving opportunity to PT Panutan Selaras to continue their cooperation in producing premix," Arnauly said.

Based on Pakar's records, Panutan had been given two warning letters from Pertamina for the same violation that is mixing premix with other substance.

Meanwhile, a source at Pertamina said that the Jakarta Administrative Court's decision that sided with Panutan and against Pertamina proved that Indonesia legal system was still flawed.

"How come, a company that was caught red handed mixing premix and that could harm consumers wins in the court?" the source said.

The court on July 27 ruled that the head of Pertamina's storage and domestic distribution III, Mrs. Tuty Anggrahini, did not have the authority to sign a suspension letter against Panutan Selaras. And therefore, the suspension was considered void by the court.

Pertamina has filed an appeal with the Jakarta high court against the Jakarta Administrative Court's decision.

Panutan filed a lawsuit against Pertamina at the Jakarta Administrative Court on June 30. And on July 3, the court issued a by-law ruling that ordered Pertamina to restore Panutan's rights as fuel distributor. But Pertamina did not heed the ruling, arguing that the verdict was handed down three days before the first court hearing.

Pertamina remains at its decision not to give distribution rights to Panutan until a definite decision from the court, arguing that if it allows Panutan to transport its crude, nine other companies that received the same penalties from Pertamina would demand the same thing. (*)

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