Analysts welcome Susilo's appointment

JAKARTA (JP): Minister of Mines and Energy Susilo Bambang Yudhoyono is capable of supervising and developing the country's oil and mining sector, but he needs the support of experts to compensate for his lack of professional background in the industry, analysts said on Wednesday.

Executive director of the Indonesian Mining Association Paul Louis Coutrier told The Jakarta Post the mining industry should feel comfortable with Yudhoyono's appointment because despite his military background he was known as a progressive thinker.

Coutrier said Yudhoyono, who earned a masters degree in management from Texas A & M University in the United States, was also known for his managerial skills.

"The mining industry is ready to cooperate with the new minister," Coutrier said.

He said Yudhoyono's experience in handling territorial affairs in the Indonesian Military (TNI) could help him to solve many problems in the mining sector, including issues concerning illegal mining activities which had been on the rise over the past two years amid the economic crisis.

Yudhoyono, 50, was TNI's chief of territorial affairs before his appointment on Tuesday to the National Unity Cabinet.

Coutrier said he believed that with his broad knowledge of territorial affairs, Yudhoyono would be able to curb illegal mining activities and address related social conditions in a "comprehensive, holistic and integral" manner.

He noted however that to achieve success in his tenure, Yudhoyono should pay attention to expert advice from officials in the ministry and in the industry.

Oil and gas analyst RO Hutapea, who served as an expert aide to two former ministers of mine and energy -- Ginandjar Kartasasmita (1988 to 1993) and IB Sudjana (1993 to 1998) -- also underlined the importance of expert support for Yudhoyono.

He said foreign investors, who dominate the oil, gas and mining industries, would welcome such a move.

"The investors will heave a sigh of relief, saying 'They know our language'," Hutapea said.

He called on Yudhoyono to recruit local expertise in the field over foreign expertise.

"Indonesia has enough qualified oil and gas experts who know more about this country than foreign experts," Hutapea said.

He said most people would prefer to see a professional at the helm of the ministry but they could accept the appointment of Yudhoyono as a part of the compromises made by President Abdurrahman Wahid to maintain national unity.

Analysts claim Abdurrahman appointed three TNI active members to his Cabinet, including Yudhoyono, in order to secure the consent of former defense/TNI Commander Gen. Wiranto's to hand over the minister of defense post to a civilian and the TNI commander post to a member of the Navy.

Abdurrahman appointed Yuwono Sudarsono as the first civilian minister of defense and Adm. Widodo AS as the first non-Army TNI commander. Wiranto was appointed coordinating minister for political affairs and security.

Hutapea also suggested that Yudhoyono's appointment was a move to free up the industry.

"Various conflicting parties have long been competing for control of the oil and gas sector. I think the President appointed a military member to lead the sector to free the sector from the control of any party.

"You know that the military is neutral," Hutapea said.

He said Yudhoyono's main tasks included reforming the oil and gas company Pertamina and taking "definitive" action on the 159 contracts awarded by Pertamina to former president Soeharto's family and cronies.

Several analysts called on Yudhoyono to resume the efforts of predecessor Kuntoro Mangkusubroto's bid to propose an oil and gas bill to replace the Law No. 8/1971 on Pertamina. Kuntoro failed to obtain approval from the legislators for his bill after seven months of lobbying.

However, Hutapea said Yudhoyono should delay any plans to introduce a new oil and gas law in the near future as it would lead potential investors to delay their investment plans.

"Kuntoro's oil and gas bill and the rejection of the bill by the House of Representatives have caused turmoil in the oil and gas sector," he said. (jsk)