In­done­sia con­firms Widyawati as Per­tam­ina CEO

The Star Malaysia - StarBiz - - Foreign News -

JAKARTA: In­done­sia’s gov­ern­ment has con­firmed Nicke Widyawati as the per­ma­nent chief ex­ec­u­tive of Per­tam­ina and picked a new up­stream di­rec­tor amid pres­sure on the state-owned en­ergy firm to curb im­ports, boost refin­ing ca­pac­ity and biodiesel use.

Widyawati be­came the act­ing chief ex­ec­u­tive of­fi­cer in April af­ter Elia Massa Manik was fired af­ter re­peated clashes with the gov­ern­ment over fuel price con­trols, crit­i­cism over his han­dling of an oil spill and for fail­ing to meet man­dates on fuel sales.

Widyawati, a for­mer hu­man re­sources di­rec­tor at the com­pany, is the third CEO at Per­tam­ina in just three years.

“There are three man­dates from the gov­ern­ment – re­duce im­ports, start de­vel­op­ment of re­finer­ies and im­ple­ment the B20 biodiesel project,” Widyawati told re­porters at a press con­fer­ence at the State-Owned En­ter­prises Min­istry af­ter her ap­point­ment by In­done­sian Pres­i­dent Joko Wi­dodo.

The B20 project start­ing next month will re­quire all diesel fuel to con­tain at least 20% bio­con­tent, typ­i­cally palm oil, to boost palm oil con­sump­tion, slash fuel im­ports, and nar­row a yawn­ing cur­rent ac­count gap.

In­done­sia, one of South-East Asia’s big­gest fuel im­porters, also aims to re­duce its im­port bill by im­prov­ing its age­ing do­mes­tic re­finer­ies, but some projects have been de­layed be­cause of fi­nanc­ing is­sues.

The gov­ern­ment also ap­pointed Dhar­mawan Samsu, the coun­try head of BP Plc’s In­done­sia unit, as Per­tam­ina’s up­stream di­rec­tor.

In­done­sia was once a ma­jor crude oil pro­ducer and ex­porter, and a mem­ber of the Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries, with out­put reach­ing more than 1.6 mil­lion bar­rels per day (bpd) in 1995. Since then, the in­ter­na­tional oil ma­jors that had dom­i­nated the coun­try’s oil de­vel­op­ment have scaled back their op­er­a­tions be­cause of un­cer­tainty around reg­u­la­tions. The lack of in­vest­ment in new re­serves and ris­ing fuel de­mand has caused In­done­sia to be­come a net oil im­porter.

— Bloomberg

Chal­lenges ahead: An at­ten­dant pre­pares to re­fuel a mo­tor­cy­cle at a PT Per­tam­ina Persero gas sta­tion in Jakarta. In­done­sia aims to re­duce im­port bill by im­prov­ing its age­ing do­mes­tic re­finer­ies, but some projects have been de­layed be­cause of fi­nanc­ing is­sues.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.