Gus Dur vows Tangguh LNG project to benefit Irianese

JAKARTA (JP): President Abdurrahman Wahid has promised that the planned Tangguh LNG plant in Berau Bay, Irian Jaya, would benefit the people of Irian Jaya.

The President also said he hoped the LNG megaproject would help speed up the government's efforts to improve the country's economy.

"The President ordered the minister of mines and energy to speed up the developmental process of the Tangguh LNG plant in Irian Jaya to boost the government's income, help accelerate the economic recovery and improve the welfare of the Irianese," presidential expert staff member Rizal Ramli said in a statement on Tuesday, referring to the meeting of the Cabinet's economic team on Monday.

Abdurrahman said, however, that the environment should be protected during the development of the project.

The gas fields around the planned Tangguh LNG plant have a proven reserve of 14.4 trillion cubic feet (tcf) or a proven and probable reserve of 23.7 tcf, of which the plant could produce between 3 million to 18 million tons of LNG per year for 20 years.

Abdurrahman said he expects the project to yield a total potential revenue of US$60 billion.

The Tangguh LNG project is owned by state oil and gas company Pertamina and a consortium led by American oil and gas company BP Amoco.

An Indonesian delegation led by Minister of Mines and Energy Susilo Bambang Yudhoyono visited China for several days to market the Tangguh LNG project.

Director General of Oil and Natural Gas Rachmat Sudibyo, who took part in the visit, said the Chinese government told the Indonesian delegation it would submit its LNG demand of three million tons per year in the tender in August this year. The LNG will be supplied to Guang Dong province.

Abdurrahman said he appreciated the visit to China, ordering the minister to take all efforts necessary to follow up on the negotiations with the Chinese government to win the LNG tender.

"The President underlined that it was very important to win the Chinese LNG tender," Rizal said.

Aside from China, Indonesia is also trying to sell its LNG products to India.

During the Cabinet meeting, the President also received reports on a total of Rp 310 billion (US$33.6 million) in unpaid forestry funds and fines owed by concessionaires to the government to March 2000.

Abdurrahman ordered the Ministry of Forestry and Plantations to be more proactive and tougher in recovering the funds.

The President also ordered State Minister of Investment and State Enterprises Development Rozy Munir to perform an organizational and financial restructuring soon on state construction companies, given their poor performances.

The construction companies had preformed poorly even prior to the economic crisis, Rizal said.

The President also voiced support to the Ministry of Industry and Trade's efforts to help send Indonesian workers abroad amid the economic crisis, which had caused rampant layoffs at home.

The President asked the ministry to provide workers before they are sent abroad with training from funds from the tax revenue collected from expatriate workers.

Abdurrahman also ordered state electricity company PT PLN to be flexible in imposing electricity rate increases in the industrial sector, given the cashflow problems experienced by most of the country's industries.

The President ordered PLN to impose high rates on power users during the peak period and provide incentives for users during the off-peak period.

The President also ordered Minister of Maritime Exploration Sarwono Kusumaatmadja to prepare concrete programs for boosting the government's revenue through maritime explorations. (jsk)