Pertamina will soon be restructured

The restructuring blueprint for Pertamina has been completed, and it just needs President Abdurrahman Wahid's approval to implement to prevent future practices of corruption, collusion and nepotism, locally known as KKN.

The secretary of Pertamina's board of commissioners (DKPP), Iin Arifin

Tahyan, said that he had received the blueprint, that advised - among other things - reduction in Pertamina's business units, reduction in the number of directors and rationalization of its manpower.

"The blueprint has been completed, it's now waiting for the President's approval," Iin said.

Iin explained that under the restructuring plan, Pertamina would have two main business units one in the upstream business and the other hand will be in the downstream business.

The upstream business would deal with oil and gas exploration and production, currently under a holding company known as Pertamina Own Operation (POO).

Meanwhile, the downstream business will combine four existing operations into one entity. The four operations are those in the processing business, docking, communications and transportation or airports businesses.

Because of the narrowing of Pertamina's business units, the number of Pertamina's directors would automatically be reduced. And the number of employees would also be cut from 25,525 people now to around 17,800 people in the next five years.

Meanwhile, Director General of Oil and Gas Rachmat Sudibyo said that the objectives of the restructuring in Pertamina was to improve its efficiency and prevent future KKN practices. (*)