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