An Industry polluted

THE more corruption cases are exposed in the oil and gas sector reveals the chaotic situation the industry is in. The corruption case involving SKK Migas (oil and gas regulatory unit) chairman, Rudi Rubiandiniwhich has now involved othershas revealed new cases, among them those involving the Bangkalan DPRD (Regional House of Representatives) Speaker, Fuad Amin Imron in the fake Letter of Credit (L/C) case of Innovare Gas at the East Bontang block in East Kalimantan.

There is irony in this. Indonesia clearly needs additional oil production because fuel consumption keeps increasing. With production likely to become stagnant, the increasing consumption has prompted Indonesia to import crude oil and fuel in fantastic volumes. As a result, the oil and gas trade always shows a deficit. In 2013, the deficit on oil and gas reached US$12.63 million (Rp152 trillion). In the past 10 months alone, the cost has soared to Rp130 trillion.

December 16, 2014