Mines and energy sector and the crisis

Mines and energy sector and the crisis

The monetary crisis has influenced all business sectors. But
in the mines and energy sector, the impact has been less severe.

Minister of Mines and Energy Kuntoro Mangkusubroto said: "This
is because the mines and energy sector is a long-life industry.
Even now, investors are positive. If other sectors look at the
impact as a specific prediction in short and middle terms, the
mines and energy sector will, at least, take 20 years."

Kuntoro said investors in this sector were not too worry by
recent conditions. By examining their expected budgeting, he
said, they are not so different from investors at times of peak
production.

He said mines and energy industries were not giving maximum
benefit to the public because they were not efficient according
to the market mechanism. To anticipate this, he said, the
ministry will revise some regulations relating to mines and
energy, such as Law No.8/1972 on oil and gas production,
eliminating a step-by-step injection market mechanism in order to
obtain efficiency.

"In order to enter competition in the globalization era, all
industries, especially in the mines and energy sector, should be
prepared to work efficiently, competitively and professionally."