Sutanto’s Daunting Tasks
The Jakarta Post, Thursday, 15 January 2009

The recent appointment of General (ret.) Sutanto -- the country’s former 
National Police chief, as president commissioner of state oil and gas company 
Pertamina brings hope that the company will perform better.

President Susilo Bambang Yudhoyono’s choice to appoint him, replacing General 
(ret.) Endriartono Sutarto, might have been based on Sutanto’s achievements 
both before and during his tenure as the National Police chief. 

Sutanto, one of the most successful national police chiefs in transforming the 
national police force’s image as well as in its performance to better serve the 
people, has so far been lauded by many. The extension of his term was expected 
when SBY was a bit late to appoint his successor.

With his new post, it is expected that he will be able to turn Pertamina into a 
world-class oil and gas company. However, the company has been suffering from 
repeated illnesses when it comes to its distribution system. It has been under 
fire for a recent scarcity of subsidized 3-kilogram liquefied petroleum gas 
cylinders and gasoline and diesel fuels at many gas stations over the past few 
days.

Sutanto pledged, after his inauguration, that his first priority as president 
commissioner was to prevent a repeat of fuel scarcity. However, the other 
issues he has to deal with are so daunting — especially when it comes to 
directing Pertamina’s board of directors in order to create a healthy, 
profitable and competitive company.

Together with other commissioners, his tasks will be, among other things, to 
oversee the running and the growth of the company.

Sutanto should not hesitate to learn from Malaysia’s Petronas — Pertamina’s 
one-time younger sibling which since 2003 has became the seventh top oil and 
gas firm in the world. 

Its 2004 profits were US$5 billion, and when oil prices soared to $145 a barrel 
last August, Petronas reaped a record net profit of $18,1 billion during the 
2007/2008 period.

On the other hand, Sutanto should prevent PT Pertamina’s board of directors 
from being summoned and investigated again — as they were last year — by the 
House of Representatives for the company’s fuel management practices, 
especially in regards to irregularities in the import of crude oil and its fuel 
products.

This included questions on the company’s partnership with oil brokers who have 
insufficient capacity, coupled with a lack of transparency in the import 
process which was blamed for causing imported products to be more expensive 
than what neighboring countries paid.

We have high hopes for Sutanto to develop PT Pertamina into a world-class 
company because the last issue mentioned above is not new for him as he was 
quite harsh in dealing with criminals, brokers and other illegal practices, and 
he knows how to overcome it.

He also doesn’t have to think about his remuneration, as he will receive a 
salary equal to half of the company’s president director who receives Rp 150 
million a month ($15.000).

M. RUSDI
Jakarta


Source: THE JAKARTA POST
URL: 
http://www.thejakartapost.com/news/2009/01/15/letter-sutanto’s-daunting-tasks.html




      
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