Minggu, 14 September 2014

JOKOWI CALLED ON TO CRACK DOWN ON OIL MAFIA

 By Andi Abdussalam  
          Jakarta, Sept 14 (Antara) - President-elect Joko Widodo, better known as Jokowi, is urged to assign clean ministers from professional circles and fight against oil and gas mafia which controls the country's oil business.
       "We hope people appointed as ministers by Jokowi are clean figures from professional circles who have integrity and capability," Director of Indonesia Monitoring Center (IMC) A.H. Wakil Kamal told a press conference on Friday.
        Kamal said that Jokowi should appoint clean people to fill in ministerial posts in the ministry of energy and mineral resources, the ministry of state-owned enterprises and other ministries on economic affairs.
        "These important positions should be filled in with professionals not with people coming from political parties. These ministries are prone to being used as sources of political funds," he said.
        Jokowi should keep distance from those allegedly involved in oil mafia in an effort to create a clean government. Oil mafia operating in the country so far should instead be eliminated.

 
        There should be no discrimination in fighting against oil mafia.
        "The government must investigate, arrest and take them to justice, no matter who they are," Adian Napitupulu, the secretary general of the National Activists Association (PENA)98, said meanwhile on Saturday.
        The government must stop the operations of oil mafia which undermines the country's oil and gas business. For that purpose, the government set a priority scale. 
   "We have to make a priority scale to settle the big issue as there is a lot of ones. Mafia inside the policy making is more dangerous," Adian added.

        To clean mafia elements from inside, IMC Director Kamal suggested that Jokowi should study the track records of people he would appoint as his ministers.
        "Jokowi must soon declare that people around him are clean from mafia and corruption. There are still a lot of clean people such as academicians and practitioners he could assign so that his cabinet will be clean and respected. We also call on Jokowi not to be intervened, including by Megawati Soekarnoputri (leader of the PDIP party who nominated him)," stated Kamal.
        Kamal suggested that Jokowi should cooperate with the Corruption Eradication Commission (KPK) and the Financial Transaction Analysis and Report Center (PPATK) in tracing the track records of his would-be ministers.
        By appointing clean ministers, Jokowi will be able to fight indiscriminately oil and gas mafia and other abuses of state money.
        PENA 98 Secretary General Adian Napitupulu even offered himself to be appointed as a member of an Anti Oil and Gas Mafia Task Force, promising he would help crack down on the country's oil and gas mafia.
        "We are ready to do the job if Jokowi assign us. We are ready to lead it. We will take immediate concrete steps to stop illegal activities in the oil and gas sectors," he said.
        Jokowi's intention to set up a task force to fight oil and gas mafia is a good plan but the task force should act objectively.
        "I think it is a good plan as long as the task force is objective and indiscriminate," energy economic observer Marwan Batubara said earlier.
         Marwan said that if a task force is really set up, it should have commitment to fighting oil mafia without discrimination. However, it should not happen that it would adversely create a new form of mafia.
         In the meantime, researcher Salamuddin Daeng of the Institute for Global Justice expressed fear that the formation of an anti oil and gas mafia could turn out to adversely create a new mafia.
         "Before setting up a task force, the government should first understand well how a mafia was formed. If the government tries to crack down on it with the establishment of a task force, it seems that it fails to understand comprehensively how the mafia was set up," Salamuddin said on Thursday.
        Fighting mafia in that way (by a task force) indicates that one did not understand the philosophy and history of oil and gas mafia and how it works.
        "Further, it will be worse if the anti-mafia task force comprised people who have previously been involved in or main actors in the oil and gas business in Indonesia," he said. 
    He therefore expressed fear that big time mafia people, both outside and inside the government, would remain to be untouched by the law. Thus, the oil and gas mafia elimination campaign would only become a lip service.

         "The Jokowi - Jusuf Kalla government should learn the history how the mafia was formed so that it will be able to take effective strategies to overcome it," Salamuddin Daeng said.
         He said that the presence of mafia was in line with the liberalization, a move that only undermined the principles of Constitution, especially in the oil and gas sector. Mafia became  stronger and stronger as the role of the state in national oil and gas management continued to decine.
        As a result, according to Salamuddin, the oil and gas sectors were controlled by international companies in cooperation with domestic syndicates who capitalized on mafia inside the oil and gas institutions, including government institutions.
        "The oil and gas Mafia works in all oil and gas business chains: in the upstream to downstream sectors, in the awarding of oil production sharing contracts that disadvantaged the state, in the production manipulation, in oil and gas export and import and in theft of subsidized oil for resale to the private sector and overseas," he explained.
         As a matter of fact, foreign oil mafia has also operated in the upstream area. "They manipulated the oil and gas business by marking up cost recovery funds, manipulating the number of oil wells, manipulating production figures and manipulating production sharing values and taxes," remarked Salamuddin.
         In the downstream sector, oil and gas mafia also thrived and manipulated the state oil share handed over by contractors, abused subsidy funds from the state budget and stole subsidized oil to be sold to industry and abroad.
         He said that the oil mafia also play roles in important institutions such as the ministry of energy and mineral resources, SKK Migas (oil and gas regulator), BPH Migas(Upstream oil and gas regulator), state-owned oil firm Pertamina and PN Gas (state gas distributor firm).
         "The institutions serve as money machines for the mafia bosses who in general occupy higher political positions," Salamuddin explained.
         Salamuddin is of the view that if Jokowi fights against the oil mafia by using another mafia approach, it will only worsen further the energy resilience in the future.
         Therefore, economic political observer Ichsanuddin Noorsy said that one of the ways to crack down on oil mafia is to disband the SKK Migas. But its functions should not be given to Pertamina.
         "To close doors for the oil and gas mafia, the SKK Migas functions, if already disbanded, should not be given to Pertmina. I think the people know why I do not suggest it be returned to Pertmina," noted Ichsanuddin.
         He said that he and other observers had since long called for the closure of SKK Migas.
         If the SKK Migas is closed, he said, its functions should be given to a new state-owned company.
         "The idea is to establish a new state company in oil investment, export and import sectors. This new state company will export and import oil directly without using a third party," Ichsanuddin said.***2***

(T.A014/H-YH)

(T.A014/A/A. Abdussalam/A/Yosep) 14-09-2014 16:05:

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