Pertamina's New Team
The Jakarta Post, Tuesday, February 10, 2009

Like father like daughter, the phototgraphs in The Jakarta Post (Feb. 6) of the 
incoming and outgoing president director of the state oil and gas company 
Pertamina were seen looking glum, apparently illustrating the daunting tasks 
the company is facing.

Karen Agustiawan, the first woman who officially took the helm at the company's 
top job, was sworn in on Feb. 5 to replace Ari H. Soemarno who had been in the 
post for a little more than two years.

For Karen - a newcomer in the company, joining Pertamina in 2006, and former 
director of upstream affairs - working in an oil and gas company is not new as 
she worked with variouos foreign oil and gas companies after graduating from 
the Bandung Institute of Technology before joining Pertamina.

Pertamina is in dire need of a professional team to lead it into becoming a 
world-class, competitive company.

For the past forty years Pertamina has been led by bureaucrats, and is known by 
many as a cash cow for political parties of the ruling government.

The entry of Karen Agustiawan, a professional in upstream oil and gas affairs; 
her deputy president director Omar Sjawaldy Anwar, a former banker and 
president director of PT Rio Tinto, replacing Iin Arifin Takhyan; plus three 
new commissioners, Gita Wirjawan, former president director of PT Ancorra Ltd; 
Sumarsono, Pertamina's former human resources director; and Humayun Boscha, 
former director of PT Caltex Pacific Indonesia, would likely form a strong team 
in addition to the newly appointed president commissioner, former National 
Police chief General (ret.) Sutanto.

Karen has vowed to speed up Ari's transformation roadmap 2008-2023 of the 
company that envisages "the 15-year plan toward a competitive world-class 
company". In addition, she unveiled six priorities - such as the importance of 
each directorate being effective, efficient and professional in implementing 
tasks; security of fuel as well as biofuel supply and distribution; and the 
advancement of the upstream business, being the greatest profit making division.

Despite the negative comment from the head of the House of Representatives 
Commission VII for energy, Airlangga Hartarto, that the replacement of the 
president director of PT Pertamina was merely cosmetic (Kompas, Jan. 6), Karen 
should prove that her team will do their best for the country by trying hard to 
implement the transformation road map initiated by her predecessor.

Therefore, she should speed up the transformation to just ten rather that 15 
years, as has been done by PT Pertamina's one-time younger sibling, Malaysia's 
Petronas. The latter profited from what it had learned from Pertamina in late 
1990s, in 2003 it had become the seventh top oil and gas firm in the world and 
reaped US$3.7 billion in profit when world oil prices were US$45 a barrel. But 
when prices soared to $145 a barrel last August, it reaped a record net profit 
of US$18.1 billion for the 2007/2008 period as compared to Pertamin's net 
profit of only US$ 2.6 billion for the same period.

For Karen and her team it means that she has to abide by her policy of 
professionalism, as she stated last week, so that PT Pertamina would now be 
free from intervention by anyone, including the government. Let's wait and see.

M. Rusdi 
Jakarta


Source: THE JAKARTA POST
URL: 
http://www.thejakartapost.com/news/2009/02/10/letter-pertamina039s-new-team.html




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