Soeharto 'disallowed imports by Pertamina'

Soeharto 'disallowed imports by Pertamina'

JAKARTA (JP): An official hinted yesterday that the decade-
long monopoly over fuel and crude oil imports held by companies
controlled by Soeharto's family and cronies had been granted on
the order of the former president himself.

Chief of the Development Finance Comptroller (BPKP)
Soedarjono said yesterday the body had once proposed to the House
of Representatives that Pertamina be allowed to import fuel and
crude oil itself to increase efficiency instead of hiring
brokers, but that Soeharto rejected the proposal.

"'That's my responsibility' the (then) president (Soeharto)
said. As a government agency, we felt it was no longer our
responsibility to pursue that matter (monopoly) further,"
Soedarjono was quoted by Antara as saying at a news conference.

The news conference was held following public calls to
dissolve the comptroller since it has been considered ineffective
given the rampant corruption, collusion and nepotism during
Soeharto's 32-year term as president.

The comptroller, which is in charge of auditing state finances
as well as state companies, is also seen as redundant since many
of its responsibilities overlap with the Supreme Audit Agency.

Soedarjono did not specify when the proposal to the House was
made but said it was suggested by Gandhi who headed BPKP between
1983 and 1993.

Pertamina has been obliged for decades to import crude oil and
fuel products through Perta Oil Marketing Ltd. and crude oil from
Permindo Oil Trading Co. Ltd.

Pertamina president Soegianto recently said in a letter to the
House that Perta was 30 percent owned by Pertamina, 20 percent by
Pertamina's pension fund, 25 percent by the Nusamba Group and 25
percent by Soeharto's youngest son Hutomo Mandala Putra, alias
Tommy. Nusamba, controlled by Soeharto's friend Mohammad "Bob"
Hasan, also includes foundations owned by Soeharto.

Permindo is 35 percent owned by Pertamina and 65 percent owned
by Mindo Petroleum. Mindo is owned by Bambang Trihatmodjo with a
14.1 percent stake, Soeharto's cousin Sudwikatmono (20.6
percent), Soeharto's son-in-law Indra Rukmana (14.1 percent),
Nirwan Bakrie (22.8 percent), Syarief Sutardjo (7.6 percent),
Mohammad Tachriel Sapi'ie (7.1 percent), Rosano Barack (7.1
percent) and Aminusal Amien (6.6 percent).

Tachriel Sap'ie recently replaced Bambang as the president of
the Bimantara Group.

Indonesia, though a petroleum exporting country, imports
between 15 percent and 20 percent of its annual fuel consumption
of 52 million kiloliters due to the limited capacity of
Pertamina's refineries.

Pertamina also imports about 70 million barrels of crude oil,
mainly from the Middle East, to feed its refineries.

Soegianto said Perta and Permindo received a commission of 10
U.S. cents per barrel from Pertamina alone.

Pertamina is planning to form a trading division to import
fuel and crude oil itself.

Perta and Permindo also reportedly enjoys the exclusive rights
to export Pertamina's crude oil to all destinations, except for
Japan, which is the largest importing country for Indonesian
crude oil.

The crude oil export to Japan is handled by Pacific Petroleum
Marketing Ltd., which is equally owned by Pertamina and a
Japanese business group that buys the crude oil. (jsk)