Between a Rock and a Hard Place

If the government's production sharing scheme suggestion with Conocophillips goes ahead, Indonesia could well be harmed.

August 10, 2004

THE screams of three fertilizer plants in Aceh for the past two years are like shouts in the desert. Pupuk Iskandar Muda I is only operating at 80 percent capacity. Pupuk Iskandar Muda II and Asean Aceh Fertilizer (AAF) are mere scrap material. What can they do? Supplies of gas as raw material from the Arun fields are no longer adequate for their needs.

Iskandar Muda I has actually stopped production since the end of last year. Even if it s

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