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A Yardstick Named Arun

Tuesday, March 27, 2001

If the Arun mayhem is not resolved, the financial impact will soon hit Indonesia, while politically, it may become the toughest test for the Gus Dur–Mega administration.

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IT was highly unexpected that the Arun case would come at the weakest point in the Abdurrahman 'Gus Dur' Wahid-Megawati Sukarnoputri administration. ExxonMobil shut down its Arun gasfield on March 9, and notified partner firm state oil and gas company Pertamina of its declaration of a force majeure. Although the production sharing contract between the two companies is not yet at an end, ExxonMobil will only resume LNG operations in Arun if there is

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