PERTAMINA CELEBRATES 50TH ANNIVERSARY; IRANIAN

C O N F I D E N T I A L JAKARTA 003447 SIPDIS SIPDIS DEPT FOR EAP/MTS, EAP/RSP, EEB/IFD/OIA, NEA/IR E.O. 12958: DECL: 12/20/2017 TAGS: ECON EPET ID IR PREL SUBJECT: PERTAMINA CELEBRATES 50TH ANNIVERSARY; IRANIAN DIPLOMAT COMMENTS ON IMPACT OF SANCTIONS Classified By: Economic Counselor Peter Haas for reasons 1.4 (b) and (d ). ¶1. (U) Summary. In a ceremony at its Jakarta headquarters that included President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla, Indonesian oil company Pertamina celebrated its 50th anniversary, highlighting past achievements and future priorities. President Yudhoyono urged Pertamina to continue to become faster, more innovative and more efficient to stay competitive. ¶2. (C) At the ceremony, Econoff met the Head of the Economic Section at the Iranian embassy in Jakarta, who alluded to the impact of the current nuclear standoff on his country,s ability to negotiate trade deals. End Summary. PERTAMINA: A &CORRUPTION-FREE ZONE8 -------------- ¶3. (U) In a star-studded ceremony at its Jakarta headquarters that included President Yudhoyono and Vice President Kalla, Indonesian oil company Pertamina celebrated its 50th anniversary. Ari H. Soemarno, President Director of Pertamina, delivered opening remarks that emphasized Pertamina,s commitment to remain competitive, practice good corporate governance and good corporate social responsibility. Addressing the President directly, Soemarno also reaffirmed his company,s continued efforts to be a &corruption-free zone8, outlining Pertamina management,s &transformation program8 to cultivate leadership among its younger ranks and achieve business operational excellence. SBY URGES PERTAMINA TO STAY INNOVATIVE AND COMPETITIVE -------------- -------------- ¶4. (U) In his speech, President Yudhoyono urged Pertamina to reflect on its past performance and that of its competitors. He stated that consumers cannot be blamed for choosing competitors such as Shell if Pertamina cannot offer competitive services, quality and prices. In order for Pertamina to become a &world-class8 oil company, he concluded, it must become faster, more innovative, and more efficient. DIPLOMAT ALLUDES TO THE IMPACT OF SANCTIONS ON IRAN -------------- -------------- ¶5. (C) At the ceremony, Econoff met and spoke briefly with Mahmoud Radboy, Head of the Economic Section for the Iranian Embassy in Jakarta. Radboy explained that prior to his tenure in Indonesia, he was posted in Tehran, where he participated in negotiations on the EU-Iran trade and cooperation agreement. He added that he hoped to be able to continue this work when he returned to Tehran but alluded to the impact that sanctions are having on Iran,s ability to engage with other countries, stating that future progress on EU-Iran trade deals would be &impossible8 until the nuclear standoff was resolved. HUME HUME