House to summons Rizal, Prijadi over OPIC claims
Thursday, May 10 2001 - 04:30 AM WIB
The House of Representatives' Commission VIII on energy and mining is disappointed with the government's approval to pay $260 million claim from Overseas Private Investment Corp. (OPIC) and will soon summons Coordinating Minister for the Economy Rizal Ramli and Finance Minister Prijadi Praptosuhardjo over the matter, Bisnis Indonesia daily reported on Thursday (May 10).
Legislator Emir Muis of Commission VIII told the daily that the House was disappointed with the issuance of a letter by Rizal to Prijadi to pay the US$260 million OPIC claim plus an interest of 6.125 percent per annum.
"We regret the issuance of the letter, without consultation with the House," Emir said.
Emir noted that the commission had issued summons for Rizal and Prijadi and hearing with the two ministers was slated to be held on May 21.
He said the government might have considered the House as a stumbling block for many of its businesses, but he noted that his commission was not like that.
"We often talk deeply to the technical things rather than using political considerations," he said. He promised that the House would help the government to find a solution to the problem.
The government approval to pay the OPIC claim is based on Rizal's letter No. S-077/M.EKON/05/2001, date May 1. Based on Rizal's letter, the payment of the claim would be pursued through a Paris Club mechanism, and therefore, the payment would be spread to a longer period.
The letter was issued following a threat from OPIC chief executive officer Kirk K. Robertson that the U.S. federal insurance company would not anymore participate in financing U.S. investment in Indonesia's energy sector if the government does not pay OPIC claim by May 1. (*)