Kuntoro gives up on bill

Kuntoro gives up on bill

JAKARTA (JP): Minister of Mines and Energy Kuntoro
Mangkusubroto has given up all hope for new oil and gas
legislation, which would have modernized Indonesia's oil sector.

"The deliberation of the bill between the government and the
House of Representatives has come to a dead end," Kuntoro told
reporters on Friday.

The death knell was the letter from the United Development
Party (PPP) asking that the bill be dropped completely because of
substantial disagreements between the government and the House.

The letter, signed by PPP faction leader Zarkasih Nur, stated
that the differences could no longer be reconciled.

The House rules require that bills be supported by all four
factions before they can be passed into law.

Kuntoro said this was a major setback for the country's oil
industry.

"The failure to endorse the bill means we will not be able to
modernize the oil and gas sector," Kuntoro said.

It would also be impossible to reveal irregularities in the
sector, he added.

The government, which drafted the bill, has been at
loggerheads with the House on the status of Pertamina, the state
oil monopoly. The ministry sought to end its privilege in
granting lucrative contracts while the House insisted that
Pertamina retain that right.

The House, which still has several bills to deliberate, will
end its tenure at the end of the month to make way for
legislators elected in the June general election. (02)