Kuntoro urged to end Soeharto monopoly

Kuntoro urged to end Soeharto monopoly

JAKARTA (JP): An anticorruption group urged Minister of Mines
and Energy Kuntoro Mangkusubroto yesterday to stop the monopoly
long enjoyed by a company controlled by one of ex-president
Soeharto's foundations on the production of gas container valves.

The Indonesian Corruption Watch said in a letter sent to
Kuntoro yesterday that PT Sumber Cipta Karya Abadi, controlled by
the Dana Karya Abadi Bhakti (Dakab) foundation, was given the
exclusive right in 1987 to produce gas container valves at the
instruction of then president Soeharto.

The company is 60 percent owned by Dakab and 40 percent by
state oil and gas company Pertamina.

Dakab is one among 105 foundations formed by Soeharto and his
family and cronies, the group said.

"The collusion has caused losses to Pertamina and the public
as they have to buy the valves for LPG containers at the price of
three to four times higher than the market price," the group said
in the letter, a copy of which was made available to The Jakarta
Post.

The letter was signed by group chairman T. Mulya Lubis and
coordinator Teten Masduki. Copies were sent to Minister of
Finance Bambang Soebiyanto, State Minister of the Empowerment of
State Enterprises Tanri Abeng, and Development Finance
Comptroller chairman Koenarto and Pertamina president Soegianto.

The group said it had received complaints from the public over
the monopoly.

"We hope your excellency, minister of mines and energy...
regains the state funds enjoyed by the company (through the
monopoly) if the complaints prove to be right," the letter said.

Pertamina has long been regarded the country's worst symbol of
nepotism due to the domination of its operations by Soeharto's
family and cronies.

They dominate the shipping of Pertamina's products, the supply
of oil, fuel and goods to Pertamina, the development of
refineries and petrochemical plants.

Pertamina recently announced that between 120 and 150
companies linked to Soeharto's family and cronies had contracts
with Pertamina. (jsk)