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."