Senin 03 Feb 2014 21:09 WIB

Expert: Pertamina is a potential target for extortion

Rep: Elba Damhuri/Mutia Ramadhan/ Red: Yeyen Rostiyani
Pertamina is a potential target to become a
Pertamina is a potential target to become a "money machine" to certain political players. (Illustration)

REPUBLIKA.CO.ID, JAKARTA - State owned enterprises (SOEs) should be treated as an engine of economic growth for people's welfare instead of a potential target for extortion by political players including executive and parliament.

"Quite often that Pertamina becomes a potential target for extortion," Executive Director of Center for Energy and Strategic Resources Indonesia-CESRI, Prima Mulyasari Agustini said on Monday.

Pertamina as a state owned company must get support to improve its performance targets to achieve a world class company status. In fact, Agustini said, legislative and executive institutions should have been at the frontline to support the state's oil and gas company. She expects someday Pertamina's performance will outnumber Petronas in Malaysia.  

Pertamina ranks at 122 among world class companies in terms of asset and profit, while Petronas Malaysia 75th. In Malaysia, the government pledges full support to its oil company to expand its business. 

Earlier, Chairwoman of Pertamina, Karen Agustiawan unveiled graft cases involving some high officials. She explained at the Corruption Eradication Commission’s (KPK) office that former Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) chief Rudi Rubiandini had asked her to provide 150 thousand USD. The money would be used to bribe House of Representative's members. She said that Minister of Energy and Mineral Resources, Jero Wacik had also asked her for money for legislator's holiday bonuses in Eid Al-Fitr in 2012. 

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