Investors concerned with security problems
Thursday, October 19 2000 - 07:30 AM WIB
The country's oil and gas investors have voiced concerns over the escalating security problems that had been hitting their operations over the past several months, state oil and gas company Pertamina said.
Pertamina's director of exploration and production Gatot K. Wiroyudo said on Wednesday that the security problem had become the main topic of discussion during the meeting organized by the Association of American Oil Experts and the Indonesian Petroleum Association in Bali on Sunday.
Aside from the security problem, the meeting participants also focused talks on the country's future oil and gas regulation, Gatot was quoted by Suara Pembaruan daily as saying.
"We have passed their concerns to the national police chief and military commander, the coordinating minister of political, social and security affairs and the Vice President," Gatot said.
Many investors held up their investment plan due to the security problems, Gatot said, adding the government and the investors were anticipating huge losses due to the security troubles.
Gatot said PT Caltex Pacific Indonesia in Riau had recorded a loss of US$780,000 per day due to the decrease in output as the result of the protests held by the villagers last week. The villagers demanded jobs from Caltex.
Aside from Caltex, ExxonMobil was also facing security problems in Aceh caused by separatist movement in the area. Oil and gas contractors in East Kalimantan, including Unocal Indonesia Company, Vico Indonesia, Exspan, Total Indonesie, faced security problems following dispute over land, employment and environment. Kupfec and Canadian Oxy were also facing similar problems in Maluku amid religious conflicts among local people. Santa Fe and BP were facing separatist movement and demands for jobs from local people in Irian Jaya.
Spokesman for Pertamina's foreign contractors management body (BPPKA) Sidick A Nitikusuma said Pertamina's president Baihaki Hakim paid a lot of attention to the problems and took over the negotiations with the local people.
"It's more difficult for foreigners (than locals) to negotiate with the local people," Sidick said. (*)