"Indonesia still depends on the companies."
Jakarta (ANTARA News) - The Indonesian government needs to establish a new state-owned enterprise (SOE) to manage cooperation contracts in the oil and gas sector, according to an expert.

"Consequently, contracts will not be signed by Pertamina," an oil expert from the Research Institute Mining and Energy Economics, Pri Agung Rakhmanto, said here during a seminar entitled "Energy Outlook 2013" on Monday.

He said Pertamina`s roles as business and public service obligation entities must be differentiated.

"The establishment of the new SOE is also in accordance with the mandate of Article 33 of the 1945 Constitution," he said.

He stated that the new SOE would serve as an alternative solution to facilitate Business to Business (B to B) cooperation.

"The government has so far implemented a Government to Business (G to B) system, but the cooperation is still made based on a business contract," he said.

Rakhmanto noted that the G to B will be effective if it is implemented in powerful and developing countries.

"Indonesia still depends on the companies," he pointed out.

He said that if the government remains to implement the contract, the system has to be changed into B to B with SOE as businessmen, investors and managers.

Rakhmanto also mentioned other alternative solutions, such as changing the upstream oil and gas provisional working unit (SKSP) into special SOE which will manage the cooperation contract as well as restructuring Pertamina by dividing PT Pertamina EP (PEP) and PT Pertamina Hulu Energi (PEH) into two different SOEs.

"Whichever the alternative solution is taken, it should be stated in the regulation," he noted.

The House of Representatives` Commission VII member, Satya Yudha, meanwhile stated that the B to B system does not guarantee safe cooperation since the management is not guaranteed as well.

"B to B is more risky since the institutions which will bear all," he added.

He referred to Malaysia and Venezuela as some of the countries that implement a B to B system, and India, Oman, Yaman, Yordania, Brazil and Papua New Guine as those that apply a G to B system.
(T.J010/KR-BSR/H-YH)

Editor: Priyambodo RH
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