ID :
17312
Thu, 08/28/2008 - 19:21
Auther :
Shortlink :
http://m.oananews.org//node/17312
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PRESIDENT DENIES HE TOOK PART IN SETTING LNG PRICE FOR CHINA
Jakarta, Aug 28 (ANTARA)- President Susilo Bambang Yudhoyono has denied an allegation made by former president Megawati Soekarnoputri that he and Vice President Jusuf Kalla had taken part in the process to set the inordinately low price of LNG (liquefied natural gas) from the Tangguh field for export to China.
"Don't spread this report about SBY (Susilo Bambang Yudhoyono) and JK (Jusuf Kalla) having taken part in setting the natural gas export price. It confuses the people," the president said at a plenary cabinet meeting at the presidential office here Thursday.
He said if the allegation was true, the government would now not be seeking to renegotiate the LNG contract with China.
Meanwhile, Vice President Yusuf Kalla said on the same occasion, the LNG export contract with China was made in 2002 (when Megawati was president, SBY coodinating minister for political and security affairs and JK coordinating minister for the people's welfare) but Megawati had never talked about the matter with him and Susilo Bambang Yudhoyono.
"We were never asked to talk about it at the time. But neither did we wish to meddle in her (Megawati's) business," Kalla said.
He said the LNG export contract with China was the worst and most disadvantageous thing of its kind in the history of Indonesia's oil and gas business.
The price of 3.2 US dollars per MMBTU stipulated in the contract with China was one-sixth below the world market price, and thereby Indonesia was earning only 600 million US dollars per year. At the current world market price of LNG, the deal with China should be generating an income of 3.6 billion US dollars per year to Indonesia, Kalla said.
"We lost an opportunity to earn 3.6 billion US dollars per year. Over the 20 years for which the contract with China was signed, the total loss will thus be Rp75 trillion. This is all because of a mistake in the handling of contracts, something on which guidelines have already been provided in relevant government regulations," the vice president said.
Earlier, former president Megawati Soekarnoputri was reported to have stated that SBY and JK were involved in the process to determine the price of Tangguh LNG exports to China.
"Don't spread this report about SBY (Susilo Bambang Yudhoyono) and JK (Jusuf Kalla) having taken part in setting the natural gas export price. It confuses the people," the president said at a plenary cabinet meeting at the presidential office here Thursday.
He said if the allegation was true, the government would now not be seeking to renegotiate the LNG contract with China.
Meanwhile, Vice President Yusuf Kalla said on the same occasion, the LNG export contract with China was made in 2002 (when Megawati was president, SBY coodinating minister for political and security affairs and JK coordinating minister for the people's welfare) but Megawati had never talked about the matter with him and Susilo Bambang Yudhoyono.
"We were never asked to talk about it at the time. But neither did we wish to meddle in her (Megawati's) business," Kalla said.
He said the LNG export contract with China was the worst and most disadvantageous thing of its kind in the history of Indonesia's oil and gas business.
The price of 3.2 US dollars per MMBTU stipulated in the contract with China was one-sixth below the world market price, and thereby Indonesia was earning only 600 million US dollars per year. At the current world market price of LNG, the deal with China should be generating an income of 3.6 billion US dollars per year to Indonesia, Kalla said.
"We lost an opportunity to earn 3.6 billion US dollars per year. Over the 20 years for which the contract with China was signed, the total loss will thus be Rp75 trillion. This is all because of a mistake in the handling of contracts, something on which guidelines have already been provided in relevant government regulations," the vice president said.
Earlier, former president Megawati Soekarnoputri was reported to have stated that SBY and JK were involved in the process to determine the price of Tangguh LNG exports to China.
