Intervention in Pertamina

Intervention in Pertamina

The World Bank has sent a note to Minister of Finance
Boediono, expressing its objection to the integration of
downstream units of Pertamina state oil and gas company and
requesting split assets, as a consequence of the implementation
of Law No. 22/2001 on oil and gas exploitation.

We have indicated at the inception of the bill that it
contains various weaknesses, let alone the permission to
undertake foreign direct investment in the oil/gas sector. The
controversial bill was passed despite mounting protests from
different circles in society.

As long as the investment is carried out in a fair and open
manner without any pressure or policy intervention, we have no
reason to be allergic toward aliens. Conversely, as a sovereign
nation we want no foreign interference with our oil/gas
management policy. The government, therefore, should not readily
submit to the will of external forces.

The Bank's request to split Pertamina's assets should in no
way lead to an intervention in the country's oil/gas policy. In
this context, we support the Pertamina president director's firm
rejection of the appeal for assets division, because the
suspicion that the Bank is being utilized by certain oil/gas
interests is not to be ruled out. -- Investor Indonesia, Jakarta