Govt prepares white book on KBC

Monday, July 26 2004 - 02:32 AM WIB

The Ministry of Energy and Mineral Resources is preparing a white book on Karaha Bodas case. The book will contain among other things the chronology of the case, data regarding building of a geothermal power plant project at Karaha in West Java, the Koran Tempo newspaper reported in its Monday edition.

Director-general of mineral resources and geology Simon Felix Sembiring appointed a team of 13 members to prepare the book through a government order No. 105.K/73.05/DJG/2004 dated May 28, 2004 and the members would have a time of three months since the issuance of the order.

When asked for the confirmation of above information, Simon said he was instructed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro to prepare the book.

“I was instructed (by minister) to compile entire data regarding Karaha Bodas project,” Simon said over the weekend in Jakarata.

The team is headed by Sukhyar, secretary to the director-general of geology, and its deputy head will be Heru Wahyudi, secretary at the regulatory agency. The members include director-general of geology, director-general of electricity and energy utilization Yogo Pratomo, director of mineral industry and coal Mahyuddin Lubis, ministry of energy’s law bureau chief Sutisna Prawira, technical director for minerals and coal Suyartono and director of power industry promotion J. Purwono.

According to Simon, the team is still collecting data and other information on Karaha Bodas.

“ So that, our grandchildren will not get wrong information or data regarding this project,” Simon said.

Pertamina and the Indonesian government have been involved in a protracted legal battle with U.S. power company Karaha Bodas Company (KBC) over the suspension by the Indonesian government in 1998 of KBC's geothermal power project in Karaha Bodas, West Java.

The Geneva panel of arbitrators in 2001 ordered Pertamina to pay $261 million in compensation to KBC for the power project suspension, which Pertamina and the Indonesian government refused to follow on the grounds that it was an overly big amount.

The compensation amount soared to $294 million on interest charges. (*)

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