REPUBLIKA.CO.ID, BAKAUHENI -- State-owned energy company PT Pertamina is expected to be able to use all Indonesia's crude oil production to be fed into its refineries in 2019. Minister for State Enterprises (BUMN) Rini Soemarno expressed her hope on board a ferry on her way from Merak, Banten to Bakauheni on Wednesday.
Pertamina has to spend large foreign exchange for the import of crude oil to feed its oil refineries. On the other hand, most of the country's crude oil production by oil contractors is exported.
Indonesia, once member of the Organization of Petroleum Exporting Countries (OPEC) has become a net importer of oil on shrinking domestic production and fast growing domestic consumption. Rini and a number of leaders of state construction companies are to inspect the progress made in the construction of the southern Sumatra section of the Trans Sumatra toll road from Bakauheni to Palembang on Wednesday and Thursday.
Rini said Pertamina under its new chief executive Nicke Widyawati is expected to reduce imports of crude oil by using all domestic production to feed its refineries. She said Pertamina is also expected to start implementing plan to build more oil refineries to reduce the country's dependence on imports for oil products mainly oil fuels.
Rini officially announced the government's decision to name Nicke as new chief executive of Pertamina earlier on Wednesday.
President Joko Widodo (Jokowi) has expressed disappointment over the failure of Pertamina to reduce its dependence on import for oil and oil products. "How could Pertamina continue to be heavily dependent on import, while it is only a matter of how to utilize domestic production," Rini quoted Jokowi as saying.
New chief executive of Pertamina, Nicke Widyawati.
Nicke was named new chief executive of Pertamina after assuming the job as acting chief executive of the company since April 20 this year to follow the dismissal of previous chief executive Elia Massa Manik. Nicke joined Pertamina on 27 November 2017 as Human Resource Director. Later she was given additional position as Logistics, Supply Chain and Infrastructure Director.
As a new chief executive of Pertamina, Nicke would take part in the forming of a holding company for state-owned energy companies that would merge gas distributor PT Perusahaan Gas Negara (PGN) into Pertamina as the holding with PGN one of its subsidiaries.
Minister Rini, representing the government as the shareholder, said Nicke is expected to be able to lead Pertamina to a more successful performance. "Nicke has done big jobs in many large projects. We will push Pertamina to start work in delayed project to build more oil refineries and improve efficiency in the process of supply chains in Pertamina," the minister said.
The country has suffered deficit in its international trade on large and growing imports of crude oil and oil fuels.
Ikuti Whatsapp Channel Republika
