Analysts welcome Susilo's appointment<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Susilo Bambang
\nYudhoyono is capable of supervising and developing the country's
\noil and mining sector, but he needs the support of experts to
\ncompensate for his lack of professional background in the
\nindustry, analysts said on Wednesday.<\/p>\n
Executive director of the Indonesian Mining Association Paul
\nLouis Coutrier told The Jakarta Post the mining industry should
\nfeel comfortable with Yudhoyono's appointment because despite his
\nmilitary background he was known as a progressive thinker.<\/p>\n
Coutrier said Yudhoyono, who earned a masters degree in
\nmanagement from Texas A & M University in the United States, was
\nalso known for his managerial skills.<\/p>\n
\"The mining industry is ready to cooperate with the new
\nminister,\" Coutrier said.<\/p>\n
He said Yudhoyono's experience in handling territorial affairs
\nin the Indonesian Military (TNI) could help him to solve many
\nproblems in the mining sector, including issues concerning
\nillegal mining activities which had been on the rise over the
\npast two years amid the economic crisis.<\/p>\n
Yudhoyono, 50, was TNI's chief of territorial affairs before
\nhis appointment on Tuesday to the National Unity Cabinet.<\/p>\n
Coutrier said he believed that with his broad knowledge of
\nterritorial affairs, Yudhoyono would be able to curb illegal
\nmining activities and address related social conditions in a
\n\"comprehensive, holistic and integral\" manner.<\/p>\n
He noted however that to achieve success in his tenure,
\nYudhoyono should pay attention to expert advice from officials in
\nthe ministry and in the industry.<\/p>\n
Oil and gas analyst RO Hutapea, who served as an expert aide
\nto two former ministers of mine and energy -- Ginandjar
\nKartasasmita (1988 to 1993) and IB Sudjana (1993 to 1998) -- also
\nunderlined the importance of expert support for Yudhoyono.<\/p>\n
He said foreign investors, who dominate the oil, gas and
\nmining industries, would welcome such a move.<\/p>\n
\"The investors will heave a sigh of relief, saying 'They know
\nour language',\" Hutapea said.<\/p>\n
He called on Yudhoyono to recruit local expertise in the field
\nover foreign expertise.<\/p>\n
\"Indonesia has enough qualified oil and gas experts who know
\nmore about this country than foreign experts,\" Hutapea said.<\/p>\n
He said most people would prefer to see a professional at the
\nhelm of the ministry but they could accept the appointment of
\nYudhoyono as a part of the compromises made by President
\nAbdurrahman Wahid to maintain national unity.<\/p>\n
Analysts claim Abdurrahman appointed three TNI active members
\nto his Cabinet, including Yudhoyono, in order to secure the
\nconsent of former defense\/TNI Commander Gen. Wiranto's to hand
\nover the minister of defense post to a civilian and the TNI
\ncommander post to a member of the Navy.<\/p>\n
Abdurrahman appointed Yuwono Sudarsono as the first civilian
\nminister of defense and Adm. Widodo AS as the first non-Army TNI
\ncommander. Wiranto was appointed coordinating minister for
\npolitical affairs and security.<\/p>\n
Hutapea also suggested that Yudhoyono's appointment was a move
\nto free up the industry.<\/p>\n
\"Various conflicting parties have long been competing for
\ncontrol of the oil and gas sector. I think the President
\nappointed a military member to lead the sector to free the sector
\nfrom the control of any party.<\/p>\n
\"You know that the military is neutral,\" Hutapea said.<\/p>\n
He said Yudhoyono's main tasks included reforming the oil and
\ngas company Pertamina and taking \"definitive\" action on the 159
\ncontracts awarded by Pertamina to former president Soeharto's
\nfamily and cronies.<\/p>\n
Several analysts called on Yudhoyono to resume the efforts of
\npredecessor Kuntoro Mangkusubroto's bid to propose an oil and gas
\nbill to replace the Law No. 8\/1971 on Pertamina. Kuntoro failed
\nto obtain approval from the legislators for his bill after seven
\nmonths of lobbying.<\/p>\n
However, Hutapea said Yudhoyono should delay any plans to
\nintroduce a new oil and gas law in the near future as it would
\nlead potential investors to delay their investment plans.<\/p>\n
\"Kuntoro's oil and gas bill and the rejection of the bill by
\nthe House of Representatives have caused turmoil in the oil and
\ngas sector,\" he said. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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