Pertamina boss rejects bribe payment

Pertamina's president Baihaki Hakim has rejected a charge that the state oil and gas company had paid between Rp 300 million and 400 million in bribe to some members of the House of Representatives (DPR) to support the government's proposal to raise fuel prices.

"It is certainly wrong. Why should we bribe the House members? when we are ourselves doing efficiency measures," Baihaki said over the weekend when he was asked to confirm press reports about the bribe payment.

The bribe payment would not only breach the law but it was also against Pertamina's cut cost policy, he said. Baihaki was appointed as the president of the state oil and gas company late last month when negotiations between the House and the government over the fuel hike proposal was nearly completed.

The government proposed to increase the fuel price by about 20 percent to cut the massive subsidy for domestic oil sales. The House, however, only approved an average of 12 percent increase.

"If we bribed the House members it means we kill ourselves because the bribe payment will dry out our cash flow," he added. (*)