JAKARTA - The appointment of Mars Ega Legowo Putra as President Director of the Pertamina Patra Niaga (PPN) Subholding has been highlighted by the public policy watchdog, Sentinel Law and Society Studies.
This institution assessed that the policy needed to be reviewed, given a number of notes related to operational performance and governance in the previous period.
Sentinel noted that during the previous leadership of the board of directors, there were still disruptions in the distribution of fuel in various regions. This is considered to have an impact on operational effectiveness and has the potential to increase distribution costs.
In addition, Sentinel highlighted the implementation of the B40 Performance Biosolar program. According to Sentinel, there are indications of weaknesses in the process of procuring biodiesel additives carried out through the direct appointment mechanism, as well as mixing methods that have not been fully integrated at the refinery facilities.
"If it is done outside the standardized blending system, then this risks consistency of quality and cost efficiency," said Ronal Jefferson, Director of Policy Advocacy Sentinel.
Digitalization of Gas Stations is Considered Ineffective
Criticism was also directed at the digitalization project of 5,518 gas stations with an investment value of around Rp3.6 trillion. This project was originally intended to strengthen supervision of subsidized fuel distribution, but Sentinel assessed that the results were not optimal in reducing subsidized solar leakage.
This condition is considered to contribute to the increased potential for misuse of subsidized fuel in non-target sectors, including plantations and mining.
Sentinel also revealed the alleged limited competition in the procurement of BBM transportation services in the Patra Niaga environment. The pattern of repeated vendor appointments is considered potentially reducing the efficiency of distribution costs.
On this basis, Sentinel encourages the SOE Ministry to conduct a thorough evaluation of Patra Niaga's management, given the large value of energy subsidies and the company's strategic role in the national fuel supply chain.
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