'Pertamina must control oil market'<\/p>\n
JAKARTA (JP): The House of Representatives wants the state-
\nowned oil company Pertamina to maintain its monopoly of the
\ndomestic oil fuel market, Iskandar Mandji of the ruling Golkar
\nfaction said yesterday.<\/p>\n
Mandji of the House's Commission for Mines, Industry and Trade
\nmade the remark in a hearing with Pertamina yesterday in reaction
\nto the government's plan to liberalize the domestic oil market
\nfor private refiners.<\/p>\n
"If private refiners are allowed to sell their products, they
\nwill also ask for authority to determine the prices and that is
\nvery dangerous because oil fuel is the most strategic commodity
\nthat may influence other sectors," he said.<\/p>\n
Secretary-General of the Ministry of Mines and Energy Umar
\nSaid told a press conference last week that the government would
\nsubmit a bill to the House later this year which would allow
\nprivate refiners to sell their products domestically, provided
\nthat the crude is imported.<\/p>\n
The Indonesian Petroleum Association (IPA) welcomed the
\ngovernment's plan, saying that the plan would attract its members
\nto invest in oil refinery.<\/p>\n
Baihaqi H. Hakim, an IPA director, told a press conference
\nlast week that the liberalization of the domestic oil fuel market
\nwould be an incentive that would attract more foreign investment
\nto the oil industry.<\/p>\n
Mandji said yesterday that the government should instead
\nimprove the incentives for investments in oil explorations and
\ndevelopment and refining.<\/p>\n
Pertamina's president Faisal Abda'oe refused to comment on the
\ngovernment's plan to allow private refiners to sell their
\nproducts on the domestic market.<\/p>\n
"We'd better wait for the government's explanation," he said
\nat yesterday's hearing. (04)<\/p>",
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