Ahok faces uphill battle as new Pertamina commissioner

Ahok faces uphill battle as new Pertamina commissioner

Newly installed president commissioner of state-owned oil and gas holding company Pertamina, Basuki “Ahok” Tjahaja Purnama, will face an uphill battle to keep tabs on Indonesia’s largest energy enterprise, experts say.

The former Jakarta governor told reporters before his inauguration in Jakarta on Monday that his position entailed “sitting on the board, as a citizen, to help oversee developments in [Pertamina’s] performance, field operations and teamwork”.

“It’s different from when I was a governor, I could tell [the public] about everything. Only certain positions have such authority. In this case, they are Pertamina’s president director and the state-owned enterprises [SOEs] minister,” he said.

As stipulated in the 2003 SOEs Law, commissioners have far less power than directors over a state-owned company’s day-to-day operations and their tenures are capped to a 10-year maximum, subject to the SOEs minister’s discretion.

“[Ahok’s] responsibility is to oversee the company and advise the board of directors on strategic moves,” said Pertamina spokeswoman Fajriyah Usman, adding that the newly appointed commissioners would begin work
immediately.

The company, she added, expected its new commissioners to “turn Pertamina into a global player”.

SOEs Minister Erick Thohir confirmed on Friday that President Joko “Jokowi” Widodo had appointed Ahok as the new president commissioner of Pertamina days after the former invited Ahok to his office and offered him a position at a state company.

Jokowi and Ahok have had a close relationship since the two men served together as Jakarta governor and deputy governor, respectively.

All the top posts in SOEs will now be decided on by a final appraisal team (TPA) in accordance with Presidential Decree No. 177/2014, according to presidential spokesman Fadjroel Rahman.

Energy Watch Indonesia researcher Mamit Setiawan told The Jakarta Post on Monday that, aside from being an overseer, Ahok was also the “government’s right hand in implementing Jokowi’s programs”.

“However, I think, as a president commissioner, it will be difficult for him to eradicate the oil and gas mafia,” he added.

The so-called “oil and gas mafia” is a catchall phrase for corrupt businesspeople in the domestic industry. Pertamina employees have often been accused of allegedly being involved with such businesspeople.

A recent example is that of Pertamina Energy Trading Ltd (Petral) president director Bambang Irianto, who was named a corruption suspect by the Corruption Eradication Commission (KPK) for allegedly receiving a US$2.9 million bribe in relation to oil imports.

Mamit also pointed out that Ahok had limited experience in the oil and gas industry. The former governor holds a bachelor’s degree in geology from Trisakti University and a master’s degree in management from Prasetya Mulya University.

During his time as governor, Ahok was known for his no-nonsense leadership until his fall from power in 2017, when he was sentenced to two years in prison for blasphemy.

Economist Faisal Basri, who was part of the government’s oil and gas reform team, said Ahok also faced a challenge gaining support from Pertamina’s bureaucracy, as the former governor is seen as a newcomer in the company.

He mentioned Dwi Soetjipto, the current head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), as an example of a newcomer who had faced such difficulties. Dwi was the president director of state-owned cement maker Semen Gresik before being appointed as Pertamina’s boss in November 2014 and held the position for around three years.

“Ahok is no angel but his spirit can be a motor for change. Although, that is not enough, he needs to have a team,” said Faisal as reported by kompas.com.

Arya Sinulingga, an aide to Erick, said on Monday that appointing public figures such as Ahok and former Central Java Police chief Insp. Gen. Condro Kirono as Pertamina commissioners was also meant to improve the oversight of the company, without introducing new powers for commissioners.

“We want the commissioners to perform their jobs well such that they can handle the day-to-day monitoring of these companies instead of the ministry,” he said.

Original Article