Jokowi Wrath, Revealing Disruption of Pertamina & PLN in Front of Erick!

Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) seemed to be venting his frustration at two State-Owned Enterprises (BUMN) in the energy sector, namely PT Pertamina (Persero) and PT PLN (Persero).

He expressed his frustration during a briefing to the commissioners and directors of these two SOEs, as well as in the presence of SOE Minister Erick Thohir, Pertamina President Commissioner Basuki Tjahaja Purnama, Pertamina President Director Nicke Widyawati, and PLN President Commissioner Amien Sunaryadi, on Tuesday, November 16, 2021 at Presidential palace.

So, what makes President Jokowi upset?

President Jokowi assesses that there are many investments that want to go to Pertamina and PLN, but unfortunately this is going slowly because it is hindered by the bureaucracy complicated.

“Then it is related to investment. I see that actually the investment that wants to enter Pertamina, PLN is queuing up and there are lots of them, but the complexity is in our bureaucracy and our own SOEs,” said Jokowi while giving briefings to the two SOEs, as quoted from video uploaded to the Presidential Secretariat’s Youtube channel, Saturday (20/11/2021).

“Then going to the field sometimes I want to be angry for something I know, but how come it’s really difficult to do, something easy doesn’t work. These positions must be continuously improved with the professionalism that you have,” he continued.

Jokowi stressed that each assignment must have consequences, both for PLN, such as electricity tariffs and Pertamina, such as the price of fuel oil (BBM) or Premium and LPG.

“It was conveyed transparently and openly. Be forthright with numbers, with calculations, with calculations. But logically. Because of the assignment, the thought was not checked, not controlled,” said Jokowi.

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“That’s later if you want securitization you will find out, the price is expensive, it’s difficult to securitize because suddenly there is an assignment, you continue to ride. This is what we have to avoid. If I’m too excited, I will take action,” he continued.

That means, according to Jokowi, Pertamina and PLN must maintain the governance of each assignment.

“Once again, don’t take a ride, don’t hide in the name of the assignment, so that the management is not efficient, the procurement is not correct. This must be avoided with the assignment,” he said.

“That’s the weakness of the BUMN, if there is an assignment, it becomes unprofessional. The weak point is there so that the professionalism is lost,” he continued.

Regarding investment, Jokowi continued, the decision lies with the company. But the government also has a grand strategy to bring Indonesia to a common goal.

“That’s the importance of professionalism and the interests of the state. The interests of the company and the state can go hand in hand. So once again you convey the risks, the consequences, the calculations, convey the calculations for each assignment to provide support to the government for the big plan that we want wake up,” Jokowi said.

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