RI to import up to 20 millon barrels of crude from Iraq,
Ibnu Hartomo joins importers, Prabowo joins exporters
Friday, July 7 2000 - 03:30 AM WIB
Indonesia has been awarded by the UN to import up to 20 million barrels of crude worth $500 million from Iraq in the next phase of the barter deal under the UN's oil for food programs for Iraq.
In returns, Indonesia has the opportunity to export food and medicine totaling US$500 million to Iraq.
Minister of Industry and Trade Luhut B. Panjaitan said that the government had appointed 10 trading companies to import oil from Iraq, including PT Perta Oil.
The government, Luhut said, would appoint about 40 exporters, out of some 140 exporters that filed their proposals to the government. According to an official at Luhut's office, one of the 40 exporters would be company belonging to Prabowo Subianto, former commander of Army Special Force (Kopassus),
Prabowo was present at Thursday's meeting between business people and Minister Luhut at the latter's office.
Luhut disclosed that out of the 20 million barrels, 3 million barrels would allocated for Perta Oil, while the remaining 17 barrels would be distributed to nine companies based on their size and capacity.
The nine companies are 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, PT Ramada Agung Internasional, serta Swadaya Sarana Berlian.
The head of the barter trade task force, Muchrim Hakim, said most of the crude from Iraq would be re-exported to a number of countries including Singapore, China, Taiwan and some European countries.
Meanwhile, Perta Oil president Pitono said the company was not aware that there were recommendations from three ministers that favored Petra Oil to import crude oil from Iraq.
"I don't know if there are recommendations, I never see a letter with signatures of the three ministers," Pitono said.
The government initially only appointed Petra Oil to import crude from Iraq, based on recommendations from ministers of foreign affairs, of mines and energy and of industry and trade.
After protests from other traders, the government then opens the door for other traders to import crude from Iraq.
State oil firm Pertamina claims that it now controls Petra Oil 100 percent after it bought out shares from other shareholders, mainly members of the former president Soeharto family.
And now, one of the nine other trading companies appointed to import oil from Iraq, namely Concord Perdana, belongs to Soeharto's relative Ibnu Hartomo. (*)