Habibie backs Kuntoro on Pertamina<\/p>\n
JAKARTA (JP): President B.J. Habibie put his weight behind
\nMinister of Mines and Energy Kuntoro Mangkusubroto over the
\nweekend, and supported the minister's plan to take over contract-
\nawarding rights from state oil and gas company Pertamina.<\/p>\n
Kuntoro said the President had turned down a proposal from
\nPertamina, backed by legislators, that Pertamina, or a new state
\ncompany to be formed by the government, be responsible for the
\nawarding of contracts.<\/p>\n
\"The President has stated there is no need to form a new state
\ncompany to take over the government's (contract-awarding) right
\nfrom Pertamina.<\/p>\n
\"The right should be returned to the government. The
\ngovernment has the infrastructure and budget needed to exercise
\nthe right,\" he said after a meeting with the President.<\/p>\n
Habibie summoned Kuntoro, Minister of Finance Bambang
\nSubianto, Minister of Industry and Trade Rahardi Ramelan, State
\nMinister of the Empowerment of State Enterprises Tanri Abeng and
\nMinister of Communications Giri Suseno Hadihardjono to discuss
\nthe latest developments in the deliberation of the oil and gas
\nbill at the House of Representatives.<\/p>\n
Pertamina president Martiono Hadianto was also present at the
\nmeeting.<\/p>\n
The oil and gas bill currently being debated at the House
\nwould lift Pertamina's decades-old monopoly on the country's oil
\nand gas downstream sector.<\/p>\n
Under the bill, the government would also take over
\nPertamina's right to award contracts to oil and gas contractors,
\nas well as its right to manage and regulate the contractors.<\/p>\n
The state delegated the mining rights to Pertamina under the
\n1971 law on Pertamina.<\/p>\n
Under the bill, Pertamina would also be transformed into a
\nlimited liability company two years after the enactment of the
\nlaw.<\/p>\n
After weeks of debating and lobbying, the House's special team
\nfor the deliberation of the bill has agreed with Kuntoro on most
\nitems in the bill, except for the contract-awarding right
\ntransfer.<\/p>\n
Most of the special team's members supported Pertamina's
\nproposal that the contract-awarding right should not be held by
\nthe government but Pertamina or a new state company.<\/p>\n
The legislators said the government should not make business
\ndeals with private companies, to avoid being sued by the
\ncompanies.<\/p>\n
But Kuntoro insisted that the right be returned to the
\ngovernment, saying he would not compromise on the matter.<\/p>\n
\"The President expressed his view to show the government has
\none single perception on the issue. We hope the House could
\nlisten to that and several factions who remain opposed (to the
\nbill's clause on the contract-awarding right) could understand,\"
\nKuntoro said.<\/p>\n
Several analysts have predicted that the deliberation of the
\nbill will be deadlocked on the issue.<\/p>\n
But Kuntoro said the deliberation would not be deadlocked.<\/p>\n
\"There is only one strategic issue that has yet to be agreed
\nupon, that is the contract-awarding right issue. God willing, we
\nwill come to the end of the deliberation soon,\" he said.<\/p>\n
Kuntoro also said that if the bill was passed into law,
\nPertamina would be assigned to only finding and extracting oil,
\nwhile oil transportation would be handled by the Ministry of
\nCommunications and the Ministry of Industry and Trade would
\nmanage the oil and gas refining process. (prb\/gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/habibie-backs-kuntoro-on-pertamina-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}