BP Gets the Fruit, Pertamina the Sap

Because of the gas shortfall in East Java, Pertamina needs Rp1.4 trillion to pay for diesel fuel. This is one of several business disputes that the state-owned enterprise has inherited from Suharto's cronies.

April 30, 2002

PRESIDENT Megawati's statement that the New Order government had bequeathed a whole load of `trashy problems' to subsequent governments was by no means over the top. The dispute between the state oil company and British Petroleum (BP) is an apt example. BP's total gas production in April this year from the Pagerungan field in Kangean, East Java, only reached 226 million cubic feet per day. This is far below the 380 million cubic feet of gas tha

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