SUDIRMAN SAID, ENERGY AND MINERAL RESOURCES MINISTER: - Exposing the mafia is not a minister's job...

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Indeed, .......But then Why do so Many Ministers and TOP OFFICIALS are and were involved themselves to Corruption affairs ....? (exam. The former Minister Hatta Rajasa ...., who is among many others seriously suspected and considered as The MIGAS Boss ( Mafia MIGAS ? )......

RESPONSIBLE is unseparated PROFESSIONAL OBLIGATION of any TOP MANAGER ..on TOP AND IN CHARGE (Marc.)

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> Abstinere debet aeger - Sick people (and those who are gravely and pathological ill.. ) must be

isolated

On 6 November 2014 09:58, B.DORPI P. <bdorpi@indopetroleum.com> wrote:

http://magz.tempo.co/konten/2014/11/04/WAW/29103/SUDIRMAN-SAID-ENERGY-AND-MINERAL-RESOURCES-MINISTERExposing-the-mafia-is-not-a-ministers-job/11/15

Tuesday, November 04, 2014

TEMPO.CO

SUDIRMAN SAID, ENERGY AND MINERAL RESOURCES MINISTER: - Exposing the mafia is not a minister's job

IN the new Indonesian cabinet, energy and mineral resources are classified as a 'hot' yet powerful sector. One example is the government's plan to raise fuel prices, an issue which is about to reach boiling point. It was in this state of affairs Sudirman Said found himself last week, when he began his job as Indonesia's minister of energy and mineral resources. Understandably, the 51-year-old Sudirman immediately set out to adopt a cautionary approach. During this interview with Tempo, he distanced himself from the fuel price issue. "Let's give the question of fuel price a pass," he said, adding that it would just unsettle the public. "Most importantly, Pertamina is ready and a team has been formed [to handle this]."

In the days ahead, Sudirman's work in managing the energy sector is bound to multiply, particularly in stamping out corruption and the 'mafia'. He feels, however, that exposing syndicates involved in energy-related criminal activities is not part of his job description. "That's not the task of the minister, but the law enforcers," Sudirman stressed. Not so long ago, his predecessor, Jero Wacik, was indicted by the Corruption Eradication Commission (KPK).

Sudirman is certainly no stranger to the sector. He once held strategic positions in a number of energy organizations, among them in state-owned oil and gas company Pertamina as an expert, as the deputy CEO of Petrosea and in Indika Energy, as the group chief of human capital and corporate services. Yet President Joko Widodo's choice of Sudirman to lead the Energy Ministry was a great surprise. "I feel honored," was Sudirman's comment.

By his own admission, his short-term mission is very clear, and that is to revitalize the ministry before the year's end. He declared himself to be the mortal enemy of the mafia. "If we have the right plan of execution, the mafia's movement would be very restricted," he explained.

Last week, he surprised Tempo's team of reporters who met him at his headquarters in Central Jakarta, by announcing his new policy on the media: no doorstep interviews. "This is much better. Interviews must be focussed," said Sudirman. Excerpts:

Your name was never previously mentioned as a possible minister, let alone as the person to lead the Ministry of Energy and Mineral Resources.

Yes, it was never publicized. I was summoned on Saturday (October 25) afternoon by President Joko Widodo. Before that, Vice President Jusuf Kalla had called to congratulate me.

Are you close to Jusuf Kalla?

We were involved together in managing [the aftermath of] the tsunami. We often held meetings when I assisted Pak Kuntoro (Mangkusubroto, chairman of the Aceh-Nias Reconstruction and Rehabilitation Agency or the BRR).
Were you first contacted by a headhunter?

As a matter of fact, the headhunters contacted me long before that, during the actual process. They wanted my suggestions on names of prospective ministers.

What did you and the president talk about that Saturday you met him?

The sustainability of energy supplies, old oil refineries, unsuccessful lifting (oil production), not enough exploration activities and a discussion on minerals.

Did you offer any solution?

I told him that liftings often failed to make the target because of deep-rooted vested interests. As long as the government manages it well, there would always be a solution.

Some say your job as the energy and mining minister was the middle road taken to solve a conflict between two groups, and that's Kuntoro Mangkusubroto and those who oppose him.

No. Until the day of the announcement, I still did not believe I would be minister because there were many more qualified people.

How do you intend to restore public trust in the Energy and Mining Ministry?

The quickest way would be to put in place symbols of trust. I plan to revitalize some positions.
What does that mean, that you'll be firing some people?

Is that the word, fire someone? There will be a restructuring, a renewal.

Have you told the ministry staff about this?

Yes. Some of the sections need to be revitalized. There are people who have been in their posts for five years.

What levels will be replaced?

I cannot say as yet. Of course the managers, after we have checked them out.

Will their replacements come from outside the ministry?

They must not be outsiders, only government employees.
When will fuel prices go up?

We don't want to publicize it yet. That could cause anxiety. What the finance minister said about fuel prices going up before 2015 is correct. They know best about insufficient funds, including calculations of how much would be needed to compensate people. Here, we just receive instructions and prepare the edict on the price rise.

In your opinion, how should Pertamina manage the fuel price hike?

We have stressed that we must be ready at any time. They Pertamina reported that starting today, a team [to manage it] has been formed.

What is being done to secure oil supplies?

Their job is to secure supplies. It should not be discussed again and again. We want decisions made, then we will clarify it to the public.

When the government no longer has to pay subsidies, where will the funds go?

We would like to build infrastructure at oil reserves locations, which would cost about Rp30 trillion. We can build storage areas which could store oil reserves for 30 days, which would really be for stored as reserves and nothing else.

What is our current capacity to store oil?

So far, we are able to store oil for only 18 days, including the time it takes to pipe the oil in.
So we're behind Vietnam, which can store oil reserves for 47 days?

We have a limited budget, so it must be done in stages.

What is the main difficulty in boosting our oil reserves?

Logically, when we use the 1 million barrels stored, we must replace that 1 million barrels, so the reserves remain the same. But so far, the recovery has only been about 50 percent. We've taken out 100,000 barrels, but we put back only 50,000 barrels. There may be two reasons for this: our inability to do so or our unwillingness. I don't think it's a lack of capacity. The State Budget loses some Rp300 trillion in this way. Is our policy [the right one] or is it benefitting certain interests?

Regarding the oil and gas mafia, what strategy will you use to fight them?

The job of the energy and mining minister is not to expose the mafia. That's the work of the law enforcers. My job is to ensure that all aspects of the energy and mining sector are managed well.
But at least, the ministry will be able to restrict the mafia's movement and activities.

Directly or indirectly. If we have the right policy and execute it well, their movements would be very restricted.

What plans do you have to boost oil production?

The key word is 'debottlenecking', that is to eliminate obstacles and ensure that everyone who is assigned to the oil and mining area are really put to work.

And those who don't work will be penalized?

There will be sanctions. If a person is given the chance but he fails to progress, his job will be taken over and assigned to someone who can.

Are you saying regulations on working in mining areas will be restructured, like being tendered out again?

Tightly tendered and selected. Their finances and capability will be checked out, to ensure that work concession areas where the government and the private sector collaborate, are not being bought and sold by brokers.

Can you envision where additional sources of oil would come from in the short term, like in a year?

There would be no significant changes in one year's time.

What other solutions could there be besides importing oil?

Whatever has been decided, will be accelerated. People wanting to explore will be given their permits, so long as they meet the conditions. We will not delay them. Then the merit system, compensation based on performance, must apply. If concession areas are given to companies which lack capital and technology, when would our lifting target ever be met? We will have to do some more careful screening.

Screening, like audits?

Whatever the name. That will be the work of the SKK Migas (Upstream Oil and Gas Operations Special Task Force).

What about the additional construction of depots to store crude oil and gas?

That will definitely be built. The process won't take long, about a year. All those many Pertamina lands can be used [for that purpose].

Does this mean that to overcome the high fuel consumption and reduce imports, you will increase the number of depots?

Well, the companies will build them. We will push the regulations. If investment is needed, we will invest.

And the target?

If we can store oil stock reserves for 30 days, that would be good.

There have been suggestions for a tax holiday, or a reduction and even elimination of taxes, for investors.

There can be many types of incentives. We should first discuss it with the finance minister. Essentially, it would be about facilitating investment in the oil refinery business.

Have there been any political party or businesspeople trying to 'seduce' you?

It's too early for that. They're still measuring me. If you show yourself as someone who needs to be seduced, the seduction will come. I'm not like that. I live simply, take care of my family and most importantly, my children's education.
Are you ignoring the political risks involved?

They cannot be ignored, but they can be regulated. We can show our good intentions so the public will support us. If someone has ulterior motives, we will ask them to think [twice] about it.

Being a minister in a government backed by the Indonesian Democratic Party of Struggle (PDI-P), has any party member tried to lobby you? Some of them are in the oil business, after all.

I have met with Bu Mega (Megawati Soekarnoputri, PDI-P head). I told her this sector needed basic restructuring. The way to do it would be to pick the best person. I felt relieved. I can now work without any burden.
What does the Energy and Mining Ministry hope to achieve under the coordinating minister for maritime affairs?

The president wants to be focussed. In essence, there should not be just cross-ministerial [responsibilities] but there should also be cooperation between the coordinating ministers. There should be no problem in that.

How did you prepare yourself to meet the president on that Saturday, October 25?

I dressed comfortably and wore sandals, because I was on my way back from my Pindad office in Bandung for my holidays.

And you were immediately offered the post of minister?

There was no mention whatsoever about a position, let alone that of a minister.