Indonesia's Pertamina removes CEO, deputy in management shakeup

Indonesia's Pertamina removes CEO, deputy in management shakeup

Indonesia's Pertamina has removed its CEO Dwi Soetjipto and Deputy CEO Ahmad
Bambang, company and government officials said on Friday (Feb 3) citing
leadership problems, and new and renewable energy director Yenni Andayani
has been appointed acting CEO.

The changes were made by Pertamina's board of commissioners and the
state-owned enterprise ministry.

"We felt that we needed to continue to make improvements, so there needed to
be a refreshment," deputy minister for state-owned enterprises Gatot
Trihargo told reporters.

Pertamina chairman Tanri Abeng said the changes were not connected to media
reports that Bambang was being questioned in connection to a corruption case
linked to Pertamina.

"There was no link to that," he said.

Instead, complex recruitment and management structure issues had "obstructed
cooperation", Abeng said, adding that there would no longer be a deputy CEO
post.

"As the largest company in this country, with multiple and complex
responsibilities, it's not easy to manage (Pertamina) effectively," he said.

The board of commissioners will review Pertamina's management structure over
the next 30 days and hoped to find a replacement CEO in that time, Abeng
said.

Dwi Soetjipto was appointed CEO of Pertamina in November 2014 by President
Joko Widodo, and has overseen efforts to eliminate corruption and slash
Indonesia's fuel imports, including by developing domestic refining
capacity.

Soetjipto could not be reached for comment on losing the posting.

Bambang, who had held the deputy CEO position for only three months, said
the change was "the best decision from Pertamina and shareholders so that
the 'noise' about Pertamina ends."

"While seeking a replacement the directors can now carry out their company
duties in peace," he said.

Andayani, who has worked at Pertamina since 1991, has since 2014 served as
director of Pertamina's new and renewable energy division, which includes
natural gas.

Indonesia's energy industry is dominated by Pertamina, which has a virtual
monopoly on petroleum imports, leads in retail sales, and owns and operates
the country's main refineries.

Pertamina is actively acquiring producing assets at home and overseas.

The energy sector is vital to Indonesia's economy, although its portion of
state revenues dropped to an expected 3.4 per cent in 2016, down from around
25 per cent in 2006, according to data from consulting company
PricewaterhouseCoopers.

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Link to Original Article:
http://www.channelnewsasia.com/news/business/indonesia-s-pertamina-removes-c
eo-deputy-in-management-shakeup/3491026.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com