Tuesday, 23 September 2014


Chairman of Commission VII Milton Pakpahan stated that although President of PT Pertamina Karen Agustiawan had resigned, she was still expected to radiate positive influence on national energy policy. Having managed PT Pertamina for 6 years Karen had successfully Ied Pertammina to become a World Class Company and be among 500 foremost companies of the world. Such was an outstanding achievement, that uplifted Indonesia’s image. The statement was made in response to resignation of PT Pertamina before attending the Parliament’s Plenary Meeting on Tuesday [19/8].

Milton appraised Karen Agustiawan as having performed well although she never worked with the company. However he stated that Karen’s resignation was quite shocking. To resign as President of Pertamina was he right which must be respected because she was making was younger successor.

All the executive who had held the position of leader of Pertamina had to face a dilemma: on the one had she had to report to the PSO but on the other hand had to run corporate business. Two mission had to be carried out by Karen and she had done it well. If the reason for her resignation was the case of LPG price of gas, there were 2 types of LPG gas: subsidized and non subsidized. The 12 kg and 50 kg gas was corporate products the increase of price was regulated by BUMN and by the Minister. If the corporation had to constantly bear loss by the LPG 12 kg and 50 kg it would mean bad mark for the corporate because they had to bear loss.

The case of LPG had been a classical problem and the public must be well balanced. If Pertamina had to come to term with the pricing would be too heavy a burden, because the deficit would continue to swell. The import which came to 5 million MFCFD [gas] had become essential need, the company must not keep losing business. It was about time the Government make corrections on prices including oil fuel.

Karen’s Registration Being Questioned

Many circles questioned resignation of Galaila Karen Agustiawan as President of PT Pertamina, House members were no exception. Karen’s resignation triggered a big question mark. Hendrawan Supratikno, member of Commission VI of House asked what was really going on behind her resignation. A position as strategic and important like President of Pertamina was fully realize by Karen that she would have to withstand hard political pressure from powerful figures who had interest in pertamina.

Hendrawan Stated that soon Commission VI of House would be concerned to ask Karen directly. Hendrawan predicated that probably Karen resigned because she was angry with the Government. Her proposal to increase LPG price was not approved and the PLN case was never solved. Or probably there were other factors because her name was mentioned in a corrupyion case, so she wished to go to America to unwind. (SS)

Business News - August 22, 2014

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