Pertamina vows to boost efficiency measures
Saturday, October 11 2003 - 11:08 AM WIB
But the management will evaluate the present program and make suitable changes if necessary to boost the efficiency of the Pertamina, Ariffi told Kompas newspaper.
He also said that though everybody can give inputs to the management regarding efficiency, but we still have to study each and every input in order to understand the problem and take necessary measures.
But what is important, according to Ariffi, is the commitment of the new management to continue the policies of its predecessor to reduce inefficiency in the Pertamina, which has become a limited liability company in line with the Oil and Gas Law No. 22/2001.
Earlier, Ariffi?s predecessor Baihaki Hakim said Pertamina could save Rp 10 trillion (around US$1.1 billion) if it takes efficiency measures in several departments of the company.
Baihaki told Kompas newspaper on Thursday in Jakarta that the efficiency measures would not only save money for Pertamina but also boost its income. He admitted this was the only thing, which he could not finish during his term as Pertamina?s president.
For example, according to Baihaki, Pertamina still spends 50 percent more on boring operations compared to the boring costs of the owners of the production sharing contracts. Moreover, we can cut the maintenance costs of refineries.
The new management of the company must settle the case of Pertamax, which is pending for a long time, as an efficiency measure. Pertamax?s oil-based fuel still gets special treatment, for which it gets huge margin, he added.
He also mentioned about the unfair practices related to 12 to 13 oil-based fuel distributors who get double margin in compare to others.
The practice of illegal levies is still exist in Pertamina in case of issuing licenses for establishing gas stations, he added. (*)