Kuntoro to improve investment climate

Kuntoro to improve investment climate

JAKARTA (JP): Minister of Mines and Energy Kuntoro
Mangkusubroto pledged yesterday to improve the investment climate
in the country's mining and energy sector.

Kuntoro said the improvement of the investment climate would
be the ministry's top priority to boost the government's dollar-
based earnings from the sector.

"I shall apply transparency and consistency to attract
investors," Kuntoro said in a speech during the ceremony marking
the transfer of the ministerial post from I.B. Sudjana to him.

The ceremony was held at the ministry's headquarters after the
installment of the new cabinet ministers at the presidential
palace.

Kuntoro said he would restructure the ministerial organization
to boost efficiency and transparency as one of the priorities
during his five-year tenure.

Kuntoro said he would also seek effective measures to minimize
the impact of the planned increase in fuel and electricity rates
on the public.

The government plans to increase fuel and electricity prices
in the near future to reduce the government's subsidies on both.

"I believe the public will accept any action we take with
regards to fuel and electricity as long as it is reasonable and
orderly."

Kuntoro served as director general of mining from 1993 until
March 1997, but he was dismissed by Sudjana in 1997 following the
Busang gold scandal.

The Busang gold field was touted as the world's biggest gold
find of the century, but an independent study said it was a hoax.

Sources said he was dismissed by Sudjana because he was
opposed to Sudjana's move to obtain a stake in the Busang gold
field for the government. Kuntoro insisted that the government
should not breach any contract.

After his dismissal, he was appointed deputy chairman of the
Investment Coordinating Board.

Kuntoro has received a positive reception from industry
officials and analysts, despite his lack of experience in the
petroleum business.

Oil and gas officials surveyed Monday by Dow Jones Newswires
said Kuntoro's reputation as a technocrat, his independent stance
in last year's Busang gold scandal, as well as his experience in
restructuring state companies bode well for the country's oil and
gas industry.

'(Kuntoro's) one of the good ones in the cabinet,' said a
Jakarta-based industry source. 'He's a technical man, (and) the
industry is pleased with his choice...He's well respected by the
industry.

Despite his dismissal last year, Kuntoro was selected for the
influential minister's post, thanks in part to his close ties to
new economy, finance and development supervisor Ginandjar
Kartasasmita and Vice President B.J. Habibie, sources said.

Kuntoro takes over at the energy ministry at a time when the
energy sector faces a host of problems.

Pertamina is now grappling with the politically volatile
issues of lifting domestic oil subsidies, payment delays to oil
and gas field operators and restructuring of the enormous state
oil and gas enterprise. (jsk)