Wed, 01 Sep 1999

Debts, proceeds from oil

Our high-ranking state officials have secured from the Consultative Group on Indonesia (CGI) fresh loans worth a total of US$5.9 billion. These loans will be enough to cover the deficit in our 2000-2001 budget. It is still a big question mark how we should ever be able to repay our huge debts, which now amount to over $150 billion. Reportedly these loans are no longer designated for the construction of roads or bridges as part of the loans is allocated to feed people. My impression is that the government is now pursuing the policy of "borrowing from Paul to pay Peter".

The huge size of the fresh loans ($5.9 billion) has reminded me of a report (hopefully this is not true) about "inefficiency" worth $6.1 billion (Rp 43 trillion) in the state-owned enterprise handling the oil and gas matters. I wish that all state-owned enterprises were properly run and then we would not have this "inefficiency" and the government would have to go into big trouble to try to find fresh loans worth $5.9 billion.

As a geologist working in the oil and gas sector, I know that our country is rich in oil and gas deposits, from Aceh in the northern part of Sumatra to Irian Jaya, as well as, also, in the waters round Natuna. My friends, the oil drilling workers have worked night and day despite the glaring sun, downpours, strong winds and even huge waves just to make sure that their drilling jobs are safe and successful.

Many oil companies have found new oil fields in a number of sites and I myself have often seen with my own eyes how oil gushes forth after a production test in a new oil field. This means that Indonesians, particularly in the oil and gas sector, have made great achievements in this respect and therefore contributed substantially to the state. On paper, the economy of the country should be good and the people live in prosperity. However, things are the other way around. Where have all the fruits of our hard work gone? Where have all the proceeds from our natural wealth gone? Why do our high-ranking state officials keep acquiring fresh loans? Let's reflect upon this simple but meaningful philosophical adage of "living beyond your station that life entitles you to" or another one which reads "the beams are not enough to support the ceiling."

SOEGENG HARTONO

Jakarta