Habibie supports Pertamina privileges<\/p>\n
JAKARTA (JP): President B.J. Habibie has agreed with the House
\nof Representatives to maintain the decades-long privileges of
\nstate oil and gas company Pertamina in the oil and gas sector, a
\nlegislator said on Monday.<\/p>\n
Ashlam Asyari of the United Development Party (PPP) faction
\nsaid the President and the House's board of leaders forged the
\nagreement in a meeting held last Thursday at the President's
\nresidence. The meeting was held in an effort to break a stalemate
\nin the four-month deliberation of the oil and gas bill.<\/p>\n
Ashlam said the meeting was attended by Minister of Mines and
\nEnergy Kuntoro Mangkusubroto, Pertamina president Martiono
\nHadianto, Indonesian Military (TNI) chief Gen. Wiranto and
\nMinister\/State Secretary Muladi.<\/p>\n
\"If Kuntoro does not follow the agreement, he can be accused
\nof being disloyal to his superior,\" Ashlam warned.<\/p>\n
However, Kuntoro denied Habibie had agreed with the House to
\nmaintain Pertamina's oil and gas privileges.<\/p>\n
\"No agreement was reached during the meeting. We only heard
\nthe President's perception on the oil and gas bill.<\/p>\n
\"The House may have its own interpretation (of the President's
\nperception), but I have a different interpretation,\" Kuntoro said
\nafter meeting with representatives of the House's four factions.<\/p>\n
Kuntoro and the legislators held the meeting to see if they
\nwere ready to resume debates on the oil and gas bill after months
\nof deadlock.<\/p>\n
Kuntoro however declined to clarify his interpretation of the
\nPresident's perception.<\/p>\n
According to the statement which summarized the results of the
\nmeeting at Habibie's house, copies of which were distributed by
\nAshlam to reporters, both the President and House leaders agreed
\nthat Pertamina must maintain its right to award oil and gas
\ncontracts and Pertamina must be developed into a strong state
\ncompany.<\/p>\n
They also agreed to maintain the current production sharing
\ncontract (PSC) system in the country's oil and gas industry.<\/p>\n
\"We, the Republic of Indonesia, should not take a wrong step
\nin introducing a policy, because if the step is wrong, the
\nmultinational companies will directly access the downstream and
\nupstream sector,\" the meeting's concluding statement read.<\/p>\n
The statement outlining the conclusion of the meeting was only
\nsigned by head of the Indonesian Democratic Party (PDI) faction
\nBudi Hardjono.<\/p>\n
The meeting's conclusion was in substantial conflict with
\nprinciples outlined in the bill proposed by Kuntoro.<\/p>\n
Kuntoro had urged that Pertamina should be comprehensively
\nstripped of its decade-long exclusive rights, including the
\ncontract-awarding right, to allow it to compete with
\nmultinational companies on a level playing field.<\/p>\n
Kuntoro had also demanded that foreign oil and gas contractors
\nbe allowed to operate under contract systems other than the
\ncurrent PSC system.<\/p>\n
After months of deadlock, the PPP faction sent last Monday an
\nofficial letter to Kuntoro, saying it was impossible to continue
\ndebates on the bill given the wide gap between the perceptions of
\nthe government and House members.<\/p>\n
However, emboldened by Habibie's alleged support, the
\nlegislators asked on Monday for Kuntoro to continue the debate.<\/p>\n
But Kuntoro said he would not continue the debate unless the
\nPPP faction revoked its letter.<\/p>\n
\"PPP should first revoke its letter, because it could become a
\nthorn in future debates,\" he said.<\/p>\n
Ashlam insisted PPP would not revoke the letter.<\/p>\n
Kuntoro and House members planned to meet today (Tuesday) to
\ndecide if they would resume the debate.<\/p>\n
Sitting House members will end their term at the end of this
\nmonth. (jsk)<\/p>",
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