[Mafia Migas] Who are The People behind Indonesia’s Oil and Gas Mafia?

Posted On 22 Sep 2014 By : Global Indonesian Voices 0 Comments Tag: Gas,Mafia Migas, Oil
Jakarta. Indonesia’s oil and gas mafia is known to have been in existence from the New Order period. There have been allegations that the group, which is popularly called the ‘mafia migas’, operates to enrich the individuals involved.
Today, 22 September 2014, Kompas.com had published an article with an intriguing title ‘Mafia Migas, Who are They?’ The oil and gas mafia allegedly make use of the state-owned oil company Pertamina and its subsidiaries as cashcows.
The mafia migas is stated as a combination of power from multinational companies, network of bureaucrats who are stooge of imperialism, and non-nationalistic politicians. They create a generation of cadres from the upstream to downstream level.
In the article, the Executive Director of Indonesia Mining and Energy Studies (IMES), Ewin Usman, is quoted to have mentioned the names of several individuals.
Names of Kuntoro Kuntoro Mangkusubroto, Purnomo Yusgiantoro, Ari Soemarni, Muhammad Reza Chalid, R Priyono, up to Karen Agustiawan is in the list of names that we should always pay attention to, when we question the mess in the governance of the Indonesian oil and gas sector, at the downstream level,” said Erwin as quoted by Kompas.com.
He shared that there are also several names that had suddenly appeared from among the CEO of multinational energy companies, who are predicted to become the Energy and Natural Resources Minister or Pertamina Managing Director.
Erwin, who is also a member of the Transition House, stated that the mafia migas was one of the aspects that had contributed to the success of former President Soeharto’s 32-years supremacy.
The oil boom in the years of 80-90s, during which Indonesia was able to produce 1.6 million barrel per day, had really made the mafia as a merry-making group”, said Erwin as quoted by Kompas.com, translated to English (21 Sep 2014).
The mafia migas then grow bigger despite a change in regime. According to Erwin, the mafia had enlarged its reach during the reformation period, after the legislation of the 2001 oil and gas law.
When former President Abudrrahman Wahid was in power however, the mafia migas was “vacuum”. However, they were able to re-enter after successfully interfering the governance and administration of oil and gas businesses through the 2001 oil and gas law.
The Kompas.com article also stated that according to a report cited by Erwin, due to the practices of the mafia migas, Indonesia is suffering a minimum loss of US $ 4.2 billion per year, which is around Rp. 37 trillion. Therefore according to Erwin, in ten years, the mafia activities could have contributed to a loss of Rp. 370 trillion.
Erwin had further shared that oil transaction at the upstream level could cover 850 thousand barrels, achieving US $ 16.5 billion or around Rp. 196.3 trillion in transaction.
This is only oil and gas, we have not counted mafias from the food and other strategic business sectors. It is truly a pity for the people and poor citizens of Indonesia. The mafia and their puppets are partying, whilst the majority of the Indonesian people live in the wallow of poverty and squalor,” said Erwin as quoted by Kompas.com.

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