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)