Hanung Eyes Pertamina Top Job; Proposal to Amend Selection Rule Filed to Jokowi

Bareksa.com - PT Pertamina's marketing and commercial director Hanung Budya is eying to take the helm of the state-owned oil and gas company as the government is lining up candidates to fill the post.

Talks among the people close to the ruling Indonesian Democratic Party - Struggle (PDI-P) are rife that Hanung has actively made efforts to secure the post as the President Director of Pertamina, which is currently headed by Acting President Director Muhammad Husein, formerly the company's Upstream Business Director, after former chief Karen Agustiawan effectively resigned on Oct 1.

"Hanung had a meeting with Puan Maharani Sunday night (Nov 23) to seek support to boost his chance," a source told Bareksa.com. Puan, the Coordinating Minister for Human Development and Culture, is the daughter of PDI-P chairman Megawati Soekarnoputri.

Puan was PDI-P head of faction in Parliament from 2009 to 2014 and remains an influential figure in the party. Hanung has denied speculations that he actively sought for Pertamina's top job. He didn't reply to Bareksa.com's SMS query about his meeting with Puan.

Pertamina is among the few very strategic state-owned enterprises in Indonesia whose board of directors' posts are the most sought after by professionals as well as politicians. The appointment of these top posts have often been marked by political intervention, creating conflicts of interest and jeopardizing professional judgement.

Separately, President Joko Widodo early November rejected a proposal to amend the existing regulation on the selection and hiring of state-owned enterprises' board of directors, another source told Bareksa.com.

The State-Owned Enterprise Ministry, known locally as Kementrian BUMN, had proposed to Jokowi to entirely leave the authority to appoint and hire state-owned enterprises' directors to the BUMN minister. Rini Soemarno, the minister, did not respond to SMS queries.

The existing regulation, Presidential Instruction No. 9/2005, stipulates that BUMN minister is required to file his proposed candidates to fill the position of state-owned enterprises' boards of directors to the so-called Tim Penilai Akhir (TPA), or the final assessor team, for the final picks and approval.

The President sits as the chairman of the TPA committee, the Vice President as the deputy chairman, the Cabinet Secretary as the Secretary, while Finance Minister and State-Owned Minister as members.

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