Rumors say Baihaki to be replaced soon by Kuntoro

The recent fuel scarcity that hit several parts of the country has a follow-up issue: the president of state oil firm Pertamina, Baihaki Hakim, will soon to be replaced soon by Kuntoro Mangkusubroto, currently president of state electricity company PT PLN.

Sources in the state palace and Pertamina said that Baihaki was considered to be incapable in handling the fuel scarcity issue, and therefore, he would soon be replaced by Kuntoro, former minister of mines and energy considered by many to be the most suitable candidate to run the giant oil firm.

"The proposal on the replacement has been forwarded to the President two days ago. It is very likely that tomorrow (Wednesday, eds.) Pak Kuntoro will be summoned to the palace," one of the sources said.

Besides Baihaki, five Pertamina directors would also be replaced, the source said, adding that the structure of Pertamina's board of directors after the replacement would be different from the current one.

"The new structure will follow a restructuring model that will be implemented in Pertamina starting next September," the source said.

In the new structure, the directorate of shipping, communication and aviation, currently led by Ilham Sjarif, would be merged into the directorate of domestic storage and marketing.

The directorate of general affairs, currently led by Sjahrial Daud, will be renamed directorate of businesses.

Meanwhile, Director of Finance Ainun Naim would be replaced by Sutadi, an official at the BPPKA.

Rumors spreading in the House of Representatives say that Baihaki will be replaced because he cannot accommodate what President Abdurrahman Wahid wants him to do, including allocating a non-budgetary fund to finance the President's activities.

Baihaki has also reportedly rejected a proposal from the President to replace the current head of BPPKA with the President's choice, Bengky, a former executive in Arco. Bengky's farther reportedly forges a close relationship with Abdurrahman. (*)