Government Needs To Preserve Pertamina’s Existence

Jakarta – TAMBANG. Agus Pambagio, an observer of public policy, pointed out that the government needs to preserve PT Pertamina (Persero) existence as a state-owned enterprise (BUMN in its Indonesian abbreviation). He argued that the government has been restraining Pertamina’s role by establishing overlapping state-owned legal entities (BHMN).

During the seminar “Is BPH Migas Still Need?”, organized by Proklamasi Institute on 31 January 2013 in Jakarta, Agus Pambagio claimed that the two state-owned legal entities, namely BP Migas and BPH Migas, have completely altered the oil & gas industry toward liberal outlook. “Under such condition, the position of Pertamina as a state-owned enterprise has been diminished,” he explained.

Therefore, Agus Pambagio applaud the Constitutional Court’s ruling for BP Migas dismissal, and look forward for another one for BPH Migas dismissal. The dismissals, he asserted, would be a great momentum to reinforce Pertamina by re-enacting its role that was performed by BPH Migas.

He further emphasized that it would be a strategic move for the government to protect Pertamina, since a public discourse has developed that Pertamina will go public. “If Pertamina goes public, foreign investor might get involve and state ownership would depleted,” he concluded. []