RI to import 15 million barrels from Iraq under oil-for-food program
Thursday, July 27 2000 - 04:30 AM WIB
The government has projected oil imports from Iraq under the "oil-for-food" program at 15 million barrels out of 20 million barrels the Middle Eastern country plans to export to Indonesia.
"We must try to achieve the target since our track record is bad now due to our failure in the previous phases," Industry and Trade Minister Luhut Panjaitan said on Tuesday.
Under the "oil-for-food" program, Iraq sells oil to Indonesia in return for consumer goods, foodstuffs, medical equipment, educational services, agricultural equipment, etc.
From the first to seventh phases of the program, the total value of the counter-trade between the two countries stood only at US$99.42 million despite the greater chance given by Iraq.
Until the seventh phase of the program, the government appointed PT Perta Oil, a subsidiary of state-owned oil company Pertamina, to import oil from Iraq under the program.
He said Indonesia would try its best to achieve the target by involving 10 companies to import oil from Iraq.
"But during my visit to Iraq (from July 17 to 21) only three companies were approved to import oil from Iraq. They are Pertamina and two national private companies," he said without elaborating.
Pertamina was allowed to import three million barrels of oil from Iraq, and the private companies two million barrels each, he said.
The rest would be allotted to seven national companies which had already held a bank statement to import at least one million barrels of oil, which is the equivalent of US$25 million, and signed a contract with an oil refinery and partner for the oil shipment, he said.
"The allotment of the oil imports to the national companies is adjusted to their capability. The bigger their, the larger the quantity of the oil imports they will receive," he said.
He expressed the hope that the national private companies which enjoyed the trust to import oil from Iraq under the program would use the opportunity properly to help the country get rid of the economic crisis.
The ten companies are PT. Perta Oil, PT. Concord Perdana Indonesia, PT. Gemilang Energindo Sentosa, PT. Sri Mukti Gas Corporation, Golden Spike Energy Indonesia Ltd, PT. Utama Bressindi Persada, PT, Istana Karang Laut, PT. Accia Nusantara, and PT. Ramada Agung Internasional, and Swadaya Sarana Berlian. (*)