Kuntoro rebukes Pertamina for alternative bill

JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangkusubroto criticized on Friday state oil and gas company Pertamina for submitting an alternative oil and gas bill, calling the move a type of insubordination.

"(The move shows that) Pertamina has forgotten its status as a state-owned company," Kuntoro said.

"The only legitimate oil and gas bill is the one that was submitted by the government in February and which is being discussed at the House of Representatives. And there is only one government in this country," Kuntoro said on the sidelines of a meeting with the House's special team for the deliberation of the oil and gas bill.

Pertamina submitted its own version of an oil and gas bill to State Secretary Muladi as an alternative to the one submitted by Kuntoro in February, in which the company proposes that it retain some of its decades-long authority over the country's oil and gas industry.

The alternative bill was also distributed among House members.

The bill proposed by the government aims at liberalizing the oil and gas industry and lifting Pertamina's decades-long monopoly on the industry.

Kuntoro also criticized Pertamina for not consulting with him as its chief supervisory commissioner on its move to submit an alternative bill to Muladi.

"Pertamina has forgotten the fact that it has a board of commissioners that oversees its operations," Kuntoro said.

Kuntoro admitted that the government-proposed bill could have caused Pertamina anxiety.

"It's normal that people get worried anytime there is a change. But I don't know if Pertamina's anxiety is sensible or superfluous," Kuntoro said, noting that Pertamina has to be prepared for the tight competition of the free market in the next millennium.

Kuntoro said he would not take action against Pertamina for its move.

"For me, the case is just like someone passing in front of me while I am having lunch. What kind of action should I take against him or her for doing that?" Kuntoro said to the laughter of reporters.

Kuntoro said Pertamina's move by no means affected the current debate on the oil and gas bill at the House, adding he would simply ignore the bill proposed by Pertamina.

He denied that the government had not consulted Pertamina in drafting the bill, saying Pertamina had given input to the government during the drafting.

"Anyway, Pertamina's move is an eye-opener. People are now well aware who is for reform in the country's oil and gas sector and who is for the status quo," Kuntoro said, but he stopped short of accusing Pertamina of intending to maintain the status quo.

Meanwhile, the debates on the oil and gas bill, which have been held daily for more than two weeks, are still deadlocked on several issues, including those regarding contract-awarding rights.

Kuntoro is insisting that Pertamina has to return the mining rights to the government. The state delegated the rights to the company under the 1971 law on Pertamina.

He also wants the power to award contracts to investors to be returned to the government. The job is currently done by Pertamina.

The House accepted the government's proposal on the transfer of mining rights but it rejected the proposal that the government would exercise the right by itself.

The House said the government should delegate contract- awarding rights to a state company -- be it Pertamina or another company formed by the government.(jsk)