TEMPO.CO, Jakarta - Former head of the Oil and Gas Reform Team Faisal Basri viewed that the oil and gas governance in Indonesia has not yet provided optimum benefits for the people.
“I want these natural resources to be used for the people’s benefit, instead of a group of people or individuals,” Faisal said in Surakarta, Central Java, on Saturday, March 4, 2017.
Faisal revealed that natural resources have become the main sources of Indonesia’s wealth and was placed seventh in The Economist’s Crony-Capitalism Index 2016. In other words, Faisal said, oil and gas businesses must have connections with the authorities in order to able to manage natural resources.
“Natural resources are managed by a small number of people. As a result, 1 percent of the wealthiest people in Indonesia own 49.3 percent of the national wealth, and 10 percent of the wealthiest people in Indonesia own 77.4 percent of the national wealth,” Faisal explained.
Faisal called on the government to improve the oil and gas governance, as well as follow up recommendations provided by the Oil and Gas Governance Reform Team. Faisal suggested the government to follow up the recommendations by exposing oil and gas mafia in Indonesia.
“We, at the Oil and Gas Governance Reform Team, found irregularities and provided recommendations in the form of forensic audit results to the government. But we haven’t heard about the follow up actions,” Faisal said.
Faisal also criticized PT Indonesia Asahan Aluminium’s (Inalum) plan to take over PT Freeport Indonesia. According to Faisal, PT Aneka Tambang, PT Timah Indonesia and PT Bukit Asam are more qualified to acquire the giant mining company. Faisal added that PT Inalum has never paid taxes since the company has not made profits.
ANTARA
