Indonesian Political, Business & Finance News

Soeharto's monopoly probed

| Source: JP

Soeharto's monopoly probed

JAKARTA (JP): State oil and gas company PT Pertamina is
investigating a Soeharto-linked company's alleged monopoly on the
production of liquefied petroleum gas (LPG) container valves.

"I've received the letter informing me about the monopoly.
I've ordered Pertamina to investigate the case," Minister of
Mines and Energy Kuntoro Mangkusubroto said yesterday.

Indonesian Corruption Watch (ICW) said in a letter to the
minister that the government awarded PT Sumber Cipta Karya Abadi,
controlled by the Dana Karya Abadi Bhakti (Dakab) foundation, the
right to monopolize the product's manufacture in 1987 at the
instruction of the then president, Soeharto.

Dakab, which was formed by Soeharto, owns 60 percent of the
company and Pertamina 40 percent.

ICW chairman Todung Mulya Lubis said in the letter that the
company sells the LPG containers valves for three to four times
more than the market price.

He called on Kuntoro to end the monopoly and appropriate the
excess money collected by the company through its monopoly.

When asked about action he would take if the allegation is
proved, Kuntoro said: "Monopolies must be scrapped. Anyway, I
can't tell you the specific actions I am going to take until
Pertamina finishes investigating the case." (jsk)

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