Pertamina urges other companies not to give gifts to its staff

Indonesian state-owned oil and gas company Pertamina is urging its business partners and associates to refrain from giving gifts to Pertamina employees over the holidays.

In a circular, Pertamina President Baihaki Hakim advised service providers, business partners and unit companies against giving Pertamina employees and their families presents for the Muslim holiday Hari Raya Idul Fitri, Christmas and New Year.

Baihaiki in the letter also advised business associates to report requests for gifts from Pertamina's employees and/or their families.

"It's our common interest to create a harmonious, fair, clean, and healthy business environment in order to strengthen our business relations," Baihaki said in the circular, which was in Bahasa Indonesia.

Pertamina had been linked to business dealings with former President Suharto's cronies during his over 30 years of dictatorship.

In 1999, an audit found that Pertamina had lost $4.7 billion due to corruption, inefficiency and mismanagement between 1996 and 1998. Pertamina has disputed some of the audit results. (*)