Pertamina downplays threat by regents

Moch. N. Kurniawan, The Jakarta Post, Jakarta

State oil and gas firm Pertamina believes that regional leaders will remain committed to protecting oil and gas operations in their respective areas despite their dissatisfaction over the new oil and gas law.

Pertamina's director of production-sharing management Effendi Situmorang said the regional leaders would do their best to prevent oil and gas investment in their respective areas being interrupted because any security problems would not only hurt investment but also damage their regions' reputations among investors.

Effendi was commenting on the threat voiced by the Consultative Forum of Oil Producing Regencies that the forum's members would not protect oil and gas investments in their respective areas unless the government and the House of Representatives accommodated their wishes in the deliberation of the new oil and gas law.

The forum has demanded that the new law have a clause requiring the formation of a special agency, to be called the National Oil and Gas Coordinating Board, that would determine all major oil and gas policies. The forum also demanded that it have representation on the forum.

However, the House and the government have rejected the proposal, saying it came too late when the debate on the oil and gas bill had already been completed.

The House is planning to pass the bill into law on Oct. 24 at a plenary session.

Effendi said he believed the forum's members would not cause trouble for the oil and gas companies in their respective areas following the rejection of their proposal.

"They wouldn't dare to sabotage oil and gas facilities. It's wrong and emotional," he told reporters after a press briefing on the evaluation of production sharing contracts.

Effendi also said that soon after the passing of the bill into law, the government would stage an information campaign to raise the public's awareness of the new oil and gas law so that people in the regions would be committed to protecting oil and gas investments in their respective areas.