Kuntoro rebukes Pertamina for alternative bill
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)