Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) is angry with PT Pertamina (Persero) because there are many unresolved problems, ranging from investment, large oil imports, to the slow development of the fuel oil refinery project.
Responding to the President’s disappointment with Pertamina, the President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama alias Ahok also spoke up. According to him, what the President said was true.
“It is absolutely true (what Jokowi said). Agree and agree,” he told CNBC Indonesia, Wednesday (11/24/2021).
Then, what will Pertamina do about the problems that Jokowi has presented? Ahok said he would submit it to the Ministry of State-Owned Enterprises (BUMN) to conduct an assessment and evaluate management.
“It is submitted to the Ministry of SOEs to assess and evaluate management,” he explained when asked what Pertamina’s follow-up to the President’s direction was.
Previously, Jokowi’s disappointment was conveyed when giving directions to the commissioners and directors of PT Pertamina (Persero) and PT PLN (Persero).
This briefing was also carried out in the presence of SOE Minister Erick Thohir, Minister of Investment/Head of the Investment Coordinating Board (BKPM), Minister of State Secretary Pratikno, President Commissioner of Pertamina Basuki Tjahaja Purnama, President Director of Pertamina Nicke Widyawati, President Commissioner of PLN Amien Sunaryadi, and President Director PLN Zulkifli Zaini at the State Palace, Presidential Palace complex, Jakarta, Tuesday, November 16, 2021.
Jokowi expressed his frustration about the slow pace of the investment process even though potential investors were already lining up to cooperate, the lack of transparency about assignments from the government, such as fuel distribution, as well as high oil imports.
Not only that, Jokowi also expressed his disappointment about the new Grass Root Refinery (GRR) project in Tuban, East Java, as well as the PT Trans Pacific Petrochemical Indotama (TPPI) Refinery which is considered to be running slowly.
Jokowi said that behind the beginning, Rosneft wanted to invest with Pertamina, but Pertamina did not receive it quickly. In fact, only 5% has now been realized.
“For years, Pertamina has known Rosneft in Tuban to want to invest. It has started, I understand that Rosneft wants to be fast, but we don’t want it to be fast,” Jokowi explained, as quoted from a video uploaded to the Presidential Secretariat’s YouTube channel, Saturday (20/11/ 2021).
“This is a huge investment, Rp. 168 trillion, but the realization is only around Rp. 5.8 trillion,” Jokowi said again, taking a deep breath.
Jokowi also mentioned the development of the TPPI refinery expansion which is also located in East Java. In fact, he added, this project has been launched since he was appointed as President for the first time in 2014.
“Nearby, there is also the TPPI, the investment is US$ 3.8 billion. Also, it has been years before we existed, then there was a problem, we haven’t traveled yet,” said Jokowi, expressing his frustration again.
In front of the President Director of Pertamina, Nicke Widyawati, Jokowi said that at that time he had yelled at the previous Pertamina president director for slow to carry out executions.
In fact, according to Jokowi, if the TPPI is successfully built, it will be a solution for Indonesia to substitute imported goods, so that Indonesia’s balance of transactions does not swell.
“So when Mrs. President Director, I went there last time, Mrs. President Director told me that, yes, I snapped because it was true, I was told the same thing, you know,” he said.
“I don’t want to hear that story again, I’ve heard it from the previous president directors’ stories. I’m outspoken, it’s normal,” said Jokowi again.
However, Pertamina is not only running two refinery projects, there are several other oil refinery projects that have been launched by Pertamina, but so far none of them have been completed.
(wia)
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