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Monday, January 27, 2020

The Government is Ready to Bite the Oil and Gas Mafia



      Adjustment of gas prices for industries is needed to encourage Indonesia's competitiveness from products produced to attract investors. The government is preparing a strategy to eradicate the mafia of the oil and gas sector which causes high prices.

Presidential Chief of Staff General Moeldoko

"The president always said that the oil and gas business must really be able to operate properly. He has often said such strong words, I don't think it should reach the President, if necessary 'bite', yes I will bite first, "said Presidential Chief of Staff Moeldoko at the Bina Graha Building, Jakarta.

Basuki Tjahaja Purnama

Moeldoko has invited PT Pertamina's chief commissioner Basuki Tjahaja Purnama to discuss a number of issues in the oil and gas sector. He expressed the direction of President Joko Widodo in the context of improving the oil and gas sector. One of them, namely the reduction in industrial gas prices that must be done. Moeldoko stressed he would oversee Jokowi's policy to reduce oil and gas prices.

Two issues discussed by Moeldoko with Ahok, greeting Basuki Tjahaja Purnama, were the matter of the President's directives to reduce the price of industrial gas and the management of strategy at PT Pertamina.

"The point is that all the President's policies in the context of oil and gas must be able to run as well as possible and there is not a single thing that can block it," said Moeldoko.

Adjustment of gas prices for the industry is needed to encourage Indonesia's competitiveness, both from products produced and attracting investors into the country. Meanwhile, Basuki said that Moeldoko had been trusted to carry out the President's direction, the company's strategic policy had been prepared and ready to be implemented immediately.

"We already have the formula. Later you will ask questions to the president director, "said Basuki.

To be sure Pertamina is confident that their steps will be supported by the government.

the oil and gas mafia

Seriously Fix

Energy observer Fahmy Radhi told Media Indonesia that the current government really often handles oil and gas mafia issues.

"Starting with Mr. Jokowi, he was angry at someone who was happy to import, even biting like that. Then also, Jokowi ordered the Head of the Criminal Investigation Section to oversee the construction of the refinery. Then also, I thought that the appointment of Ahok was also intended to eradicate the oil and gas mafia in Pertamina, "he said.

Fahmy revealed the oil and gas mafia used two weaknesses. "First, the weakness of decision making. That one can be bribed, can be controlled. It could be within the scope of government and also Pertamina "Fahmi said.

The second is to take advantage of governance that is not transparent or made transparent.

"That can be easily exploited by the oil and gas mafia earlier. Can be manipulated, "he continued.

To overcome this, Fahmy added, the government needed to work extra. Leaders or decision-makers must be people who have integrity. 

   In addition, it is also necessary to improve the governance of companies involved such as Pertamina because according to him, the oil and gas mafia in companies or government agencies is related to the wider oil and gas mafia.

"Inside, Pertamina is related to mafias, also those outside Pertamina. Like that systematically, "he said.

Media Indonesia, Page-13, Wednesday, Jan 15, 2020

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