Pertamina CEO Knows Nothing of Proposed Deputy Chief Director Position

Pertamina’s plan to change its organisational structure and add more directors continues to raise questions. Pertamina CEO Dwi Soetjipto claims he knows nothing of any proposal from the company’s Board of Commissioners to the State-Owned Enterprises Minister Rini Soemarno to create a new deputy CEO position.

Dwi said had not had the chance to go to the office because he had just returned from a work visit to Iran, so he knew nothing about proposal. “Don’t ask me. Ask the shareholders,” Dwi said after “The 4th Indonesia International Geothermal Convention and Exhibition (IIGCS) 2016” at the Jakarta Convention Center (JCC) on Wednesday (10/8). (Read: Business Expanding, Pertamina Commissioners Propose New Deputy CEO Position)

Earlier this week, Dwi was in Iran to sign an oil and gas block management cooperation agreement. Dwi was accompanied by Pertamina’s Director for Upstream Business Activities Syamsu Alam and the company’s Upstream Business Development Team.

Meanwhile, Pertamina’s Board of Commissioners sent a letter on “Proposed Structural Changes and Additional Members of the Board of Directors” to the Minister Rini on 8 August. The letter was signed by Pertamina’s President Commissioner Tanri Abeng, Deputy President Commissioner Edwin Hidayat Abdullah, and other Board of Commissioner members Shala Lumban Gaol, Suahasil Nazara, and Widhyawan Prawiraatmadja.

In a copy of the letter obtained by Katadata, the Board of Commissioners suggests adding two new director positions: Deputy Chief Director of Upstream Business Activities and New Renewable Energy, and Director of Processing and Petrochemical Megaprojects.

The new Deputy President Director will act as Chief Operating Officer for the upstream business activities sector and the new renewable energy sector, and also be responsible for leading and coordinating the Marketing and Retail Director, Processing Director, and Senior Vice President for New Renewable Energy. The new Deputy Chief Director will also be responsible for the overall operational and financial performance of upstream business activities, existing oil rigs, and utilisation of new renewable energy.

(Also read: Pertamina Allocates IDR 26 Trillion to Construct New Renewable Energy Power Plant)

Other responsibilities of the Deputy Chief Director will include leading and supervising the implementation of policies and decisions made by members of the Board of Directors in the upstream and new renewable energy sector, by calculating risks. The Deputy Chief Director must also manage and optimise efforts to integrate upstream business activities.

The authorities of the Deputy Chief Director include coordinating the policies and business strategies of Pertamina subsidiaries in the upstream and new renewable energy sector together with the Marketing and Retail Director, Processing Director, and Senior Vice President for New Renewable Energy.

The Director for Processing and Petrochemical Megaprojects will have nine tasks and duties. The short, the new director will lead and guide national-scale megaproject developments in the processing and petrochemical sector. (Also read: TPPI Refinery Begins Operation, Pertamina to Save 15 Percent of US Dollars)

These megaprojects are projects listed in Presidential Regulation No. 3/2016, including the Tuban refinery project, Bontang refinery project, and other refinery capacity improvement projects.