An exclusive interview with Purnomo Yusgiantoro
Thursday, October 21 2004 - 03:34 AM WIB
Q: After your appointment as minister of energy and mineral resources, what will be your program during the first 100 days?
A: During my first 100 days as minister of energy and mineral resources, my main aim will be to boost investment to create new jobs. I think the main objective of this (new) Cabinet is to develop the real sector. During its period 2004-2009, the Cabinet must maintain the fiscal resilience and monetary stability. This will be our strong base to develop the real sector. But the development of real sector will be dependent on how we can develop oil and gas, electricity and mining sectors and boost investment. Thus, we are hoping to create new jobs.
Q: Can you explain in details about developing oil and gas sector?
A: The investment in exploration activities can increase our national oil and gas production. Currently, we are facing a decline of 15 percent due to natural factors. With the (new) explorations, at least we hope we can maintain our oil and gas production level. Besides this, we will optimize (the production of) oil fields that already mature. As far as the oil gas sector is concerned, we have to struggle with all of our strength to support the state budget. With the increase in investment in oil and gas sector, we are hoping to create new jobs. We are also expecting supports from other sectors, especially with regards fiscal policy, which has an impact on the investment in oil and gas sector. In addition, there must be tax reforms.
Q: Now, the government has already issued regulations covering the both downstream and upstream activities. What kind of impact these two government regulations will have on investment climate in oil and gas sector?
A: The upstream and downstream regulations, with God? s blessing, will be used as a foundation on which we can create a good investment climate in the oil and gas sector. On the other hand, we are also trying to submit the draft bills on energy law and general mining law to the House of Representatives. This is my expectation.
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Purnomo's programs in first 100 days
1. In Oil and gas sector, the programs include among others the acceleration of the offshore oil production and storage facilities in Belanak oil field, West Natuna which is operated by ConocoPhilips, and the completion of the tender of the 15 new oil blocks which is expected to generate new investment worth US$160 million.
2. In the electricity sector, the programs include among others the acceleration of the operation of the 6 x 143 MW Muara Tawar steam power plant, and the geothermal power projects in eastern Indonesia including in Ulumbu and Mataloka in East Nusa Tenggara as well as the provision of electricity for a number of villages in East Nusa Tenggara.
3. In the mineral sector, the programs include the issuance of licenses for at least 13 companies to develop mining projects in nine provinces and to develop nine coal bricket factories in West Sumatera, Bangkulu, Bangka, South Kalimantan, South Sulawesi, West Java, East Java and Yogyakarta in a bid to provide fuel alternatives to the people in the provinces. (*)