Elia Massa Manik has been removed as Pertamina chief executive in a management shakeup following a series of problems at the state-owned energy company, including a recent oil spill and slow progress on refinery developments, an official at the Ministry of State-Owned Enterprises said on Friday (20/04). (Antara Photo/Sheravim)

Indonesia Removes Pertamina Chief After Oil Spill, Other Issues

BY :BERNADETTE CHRISTINA MUNTHE

APRIL 20, 2018

Jakarta. Elia Massa Manik has been removed as Pertamina chief executive in a management shakeup following a series of problems at the state-owned energy company, including a recent oil spill and slow progress on refinery developments, an official at the Ministry of State-Owned Enterprises said on Friday (20/04).

Nicke Widyawati, Pertamina's director of human resources, will serve as acting chief executive until a formal replacement is nominated, Deputy State Owned Enterprise Minister Fajar Harry Sampurno told reporters at a press conference.

Elia was among five Pertamina directors replaced in the leadership shakeup.

Another shareholder meeting next week will likely result in further management changes at gas utility Perusahaan Gas Negara (PGN), which Pertamina took over last week, Fajar added.

"With recent developments including the accident with the pipeline in Balikpapan and fuel shortages, the commissioners conducted a very comprehensive study of implementation over the past month," Fajar said, referring to the leadership changes.

"With these new directors, it will accelerate the refinery projects in the refinery development master plan," he added.

The decisions, made in consultation with Pertamina's board of commissioners, would "strengthen and accelerate implementation" of Pertamina's transition to an energy holding company, Fajar said.

Pertamina now has directors of corporate marketing, retail marketing and infrastructure, chairman Tanri Abeng said.

Pertamina recently faced criticism over its handling of the 40,000-barrel oil spill near its refinery operations in Kalimantan, and for failing to meet government mandates on fuel sales.

Indonesia, one of Southeast Asia's biggest fuel importers, hopes to reduce its import bill by improving its ageing domestic refining infrastructure, but some projects have been delayed because of financing issues.

Pertamina's finances have been hurt in recent years due to government-controlled gasoline and diesel prices that have been held below market levels.

The table below shows the latest management changes.

Removed:

Chief executive Elia Massa Manik Corporate marketing director Muchamad Iskandar Refineries director Toharso Asset management director Dwi Wahyu Daryoto Megaprojects director Ardhy N. Mokobombang

Appointed:

Refining director Budi Santoso Syarif Corporate marketing director Basuki Trikora Putra Retail marketing director Masud Hamid Asset management director M. Haryo Junianto Megaprojects director Heru Setiawan Infrastructure director Gandhi Sriwidjojo Acting chief executive Nicke Widyawati

Reuters

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