Legislator says Japanese LNG buyers dislike Baihaki

Legislator Pramono Anung speculated on Thursday that the Japanese buyers of Indonesian liquefied natural gas (LNG) had recently decided to cut their purchase from Indonesia because, among others, they disliked the possibility that former president of American oil and gas company PT Caltex Pacific Indonesia would become a leader of state oil and gas company Pertamina.

"They are worried that Baihaki will carry the United States flag," Pramono said in a seminar titled "Finding Pertamina's Future Leader".

Baihaki is tipped to be the strongest candidate for Pertamina's top job to replace Martiono Hadianto.

Other reasons that the Japanese LNG buyers decided to reduce their supplies from Indonesia were the country's political instability and their concern over legal security in the oil and gas sector after the government failed to introduce a new oil and gas law last year, Pramono said.

Some Japanese LNG buyers recently decided to cut LNG supplies from Indonesia starting 2004. (*)