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)