TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Commitee to summon energy execs in fuel price inquiry
Factions at the House of Representatives will summon officials linked to the alleged mismanagement of the country's oil and gas sector, including Energy and Mineral Resources Minister Purnomo Yusgiantoro and state oil firm PT Pertamina chief Ari Soemarno
Change Size
Factions at the House of Representatives will summon officials linked to the alleged mismanagement of the country's oil and gas sector, including Energy and Mineral Resources Minister Purnomo Yusgiantoro and state oil firm PT Pertamina chief Ari Soemarno.
Members of the House's special inquiry committee into the government's fuel price hike policy said each faction would submit its agenda and list of people to be summoned next week, to unveil alleged misappropriation that has reportedly cost the state more than US$200 billion.
"I believe the committee's priority will be to summon energy minister Purnomo Yusgiantoro and executives from the upstream oil and gas executive agency (BP Migas) and PT Pertamina," committee member Drajat Wibowo of the National Mandate Party (PAN) said.
The committee was set up to question the government's policy in raising fuel prices, following strong public protests and allegations billions of dollars in revenue from the oil and gas sector were lost through inefficiency and corruption.
Committee member Airlangga Hartarto of the Golkar Party confirmed his party's lawmakers in the committee had also agreed to question oil and gas experts and officials directly involved in the oil management.
"We already have the list of people to be summoned," he said.
Last week, the committee scrapped plans to summon Purnomo and top officials from Pertamina and BP Migas after objections by some members over the priority of witnesses to be summoned.
"I think committee members should first get information and knowledge on the issue before summoning involved officials, simply to avoid wasting time. We must have a clear agenda and priority. I think the recess period will help each faction come up with good programs," Golkar's Harry Azhar Azis said.
He said his party was committed to fixing the mismanagement inherent in the oil and gas sector, just as long as the committee was not chasing a political agenda of impeaching the president.
Yusron Ihza Mahendra of the Star Crescent Party (PBB) said the committee was serious about finding an answer to why the government raised fuel prices even though it had abundant oil outputs and reserves.
"This is a good momentum for the House to gain public trust by unveiling mismanagement and corruption in the oil and gas sector," he said.
Drajat said PAN's list of officials to be summoned included members of the Corruption Eradication Commission (KPK) and the Supreme Audit Agency (BPK), to testify about the alleged misappropriation.
The KPK last week summoned BP Migas senior executives for clarification on embezzlement cases reported by the BPK and Indonesia Corruption Watch (ICW).
A BPK audit of government income statements for the 2005-2007 period revealed about Rp 120 trillion (US$13.1 million) in oil revenues went unreported and was spent outside the state budget mechanism.
The BPK also found in its audit for the 2006-2007 period BP Migas overpaid about Rp 40 trillion in recovery costs to the company's partners.
In its report to the KPK, ICW estimated the misappropriation at BP Migas from 2000 to 2007 to be worth more than Rp 194 trillion.
Drajat, an economist, said misappropriation in oil imports had cost the state at least US$2.1 billion each year, while another lawmaker found the state had lost $2 billion a year from the overstatement of recovery costs.
