The appointment of Simon Aloysius Mantiri and Mochamad Iriawan as Chief Executive Officer and President Commissioner of State energy company PT Pertamina has a potential to open an access for corruption and can create conflict of interest and malfunction, an economist has warned.
Energy Economist from Gadjah Mada University Fahmy Radhi said that Simon Aloysius Mantiri is Deputy Secretary of Gerindra Party, while Mochamad Iriawan is Vice Chairman of Gerindra Party’s Board of Trustees. “ Both of them are cadres of Gerindra Party,” Fahmy Radhi spoke to Indonesia Business Post on Tuesday, November 5,2024.
The opening of access for corruption in Pertamina is in contradiction with strong commitment of President Prabowo Subianto to eradicate corruption in the government, state owned enterprises, he added.
He, however, assumed that the appointment of two Gerindra Party administrators as CEO and President Commissioner of Pertamina was not the will of President Prabowo, but an initiative of the minister in charge. The goal is to please the President.
It is common practice for companies that make acquisitions to control shares in a company by placing their people on the board of directors and commissioners, especially, especially its CEO and president commisioner. However, Pertamina’s shareholders are 100 percent owned by the government, represented by the Minister of State-owned Eenterprises (SOEs).
“So it is not feasible and inappropriate for a political party to place two of its cadres as CEO and President Commisioner of Pertamina,” he said.
He suggested that in order to maintain his commitment to eradicating corruption in this country, President Prabowo should cancel the appointment of Simon Aloysius as CEO and Mochamad Iriawan as Pertamina’s President Commisioner. Alternatively, both should resign as Gerindra Party cadres and administrators, if the two Gerindra Party cadres are maintained as President Commisioner and CEO of Pertamina.
The General Meeting of Shareholders of State energy company PT Pertamina on Monday, November 4, 2024, named Simon Aloysius Mantiri and Mochamad Iriawan as the new CEO and President Commissioner, respectively.
Simon, Treasurer of the Prabowo Subianto-Gibran Rakabuming Raka 2024 National Election Winning Team and the outgoing President Commissioner, replaces Nicke Widyawati. Meanwhile, Iriawan, a retired three-star police general and former Chief of the Jakarta Police, fills in the post of president commissioner left by Simon.
Pertamina Vice President for Corporate Communication, Fadjar Djoko Santoso, said the appointment and termination of directors and commissioners at state-owned enterprises, including Pertamina, is the authority of the government as shareholder represented by the Minister of State-owned Enterprises.
“The change of leadership in a company is a normal process and reasonable based on the existing regulation,” Fadjar said in a statement on Monday, November 4, 2024.
According to him, the presence of new leaders are expected to bring new energy to make sure the continuity of Pertamina leadership in the future. The leadership of the previous directors serves as a strong foundation to achieve progress in the future and realize national energy resilience and independence.
