Govt seeks revenue rise from Pertamina for 2002 budget

Govt seeks revenue rise from Pertamina for 2002 budget

Dadan Wijaksana, The Jakarta Post, Jakarta

The cash-strapped government is seeking more revenue from the
state-owned oil and gas company Pertamina to help finance next
year's state budget, according to Finance Minister Boediono.

The plan has yet to be approved by the House of
Representatives.

"We intend to seek more income from Pertamina by increasing
the government's dividend from the company to 25 percent of
annual profits," Boediono said during a meeting with the House
budget committee to debate the 2002 state budget draft.

According to Law No.8/1987 on Pertamina and government ruling
No.18/1987, the government is entitled to 60 percent of
Pertamina's net profits plus a 10 percent dividend from the
remaining 40 percent.

Pertamina recorded a net profit of Rp 3.74 trillion (US$370
million) last year.

Should the House approve the plan, a new government ruling
willl be required to replace ruling No.18/1987.

"Of course, if the House agrees to the plan then we'll have to
establish a new ruling on the matter," Boediono said.

However, the House is unlikely to come up with an approval
anytime soon as legislators put up a tough fight against the
government's plan during their Friday meeting.

The House questioned the basic assumptions the government had
used in developing the plan. They also doubted the government's
ability to apply a transparent approach in managing the revenue
obtained from the state-owned company.

Pertamina was treated as a cash-cow by corrupt government and
military officials under the authoritarian government of
Soeharto.

After long and sometimes heated debate, the House decided to
suspend the meeting. The debate will resume on Oct.17.

If agreed by the House, it would be another slap in the face
for Pertamina just weeks after the government and the House
completed debate on the new oil and gas bill, which will put an
end to its decades-long monopoly over the lucrative oil and gas
industry in the country.

The House is expected to pass the new bill into law later this
month.