McKinsey Appointed Without Tender
Thursday, 16 November, 2006 | 17:07 WIB

Tempo Interactive, Jakarta: Ari Sumarno, PT Pertamina Managing Director, has acknowledged the appointment of the consultant McKinsey for the transformation program was carried out without tender.

The pattern of consultant appointment was by a 'beauty contest'.

According to Ari, Pertamina did not actually hold a tender for its transformation program.

The reason he said, was that what was wanted was added value for the company.

“The holding of a tender is to look for the cheapest price, but we were looking for a consultant that could raise our added value,” he said yesterday (15/11).

As already reported, Pertamina used the service of international consultant company McKinsey to carry out the company's transformation at a cost of US$15 million, or around Rp140 billion.

However, the consultant’s appointment was suspected of being carried out without a tender.

Ari explained that Pertamina invited five consultant companies to propose price offer.

However, only three did so, Boston Consulting Group, PricewaterhouseCoopers and McKinsey.

According to him, the three consultants are world-class consultants and experts in the field.

“We listed their offers and we found the best one,” he said.

Ari emphasized that regarding consultants, it cannot only seek the cheapest price.

“The price offered must in line with the job. I can be responsible for this 1,000 percent.

He said that the cost Pertamina paid to the US consultant was around Rp140 billion.

He disputed reports that the program was a waste of money.

This is because when Pertamina's Managing Director post was taken by Faisal Abda'oe, Pertamina also made similar program with Boston Consulting Group.

“It was a restructuring program, now it's transformation. These are definitely different,” insisted Ari.

He went on to stress that he was ready to be scrutinized by related institutions including the Supreme Audit Agency (BPK).

He said he had carried out the selection process transparently in appointing McKinsey

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