Re: [sangkancil] Wahid Wavers Between Western Oil Alliances and Asian Unity(fwd)

["truth outhere" <capati98@hotmail.com>]

testing


>From: "M.G.G. Pillai" <pillai@mgg.pc.my>
>To: sangkancil@malaysia.net
>CC: SK <sk@lists.malaysia.net>
>Subject: [sangkancil] Wahid Wavers Between Western Oil Alliances and Asian 
>Unity (fwd)
>Date: Sun, 5 Mar 2000 09:29:02 +0800 (MYT)
>
>
>
>---------- Forwarded message ----------
>Date: 04 Mar 2000 13:07:14
>From: tapol@gn.apc.org
>Reply-To: "Conference act.indonesia" <indonesia-act@igc.org>
>To: Recipients of indonesia-act <indonesia-act@igc.org>
>Subject: Wahid Wavers Between Western Oil Alliances and Asian Unity
>
>From: TAPOL <tapol@gn.apc.org>
>Subject: Wahid Wavers Between Western Oil Alliances and Asian Unity
>
>Received from Joyo Indonesian News
>
>Stratfor Commentary
>March 2, 2000
>
>Wahid Wavers Between Western Oil Alliances and Asian Unity
>
>Indonesian President Abdurrahman Wahid has the Herculean task of finding
>sufficient sources of foreign joint-venture investment to bolster 
>Indonesia's
>troubled economy. In the oil sector, he appears both willing to court 
>wealthy
>Western multinationals and to follow a trend toward Asian unity and
>self-reliance. Ultimately, political necessity may orient him more squarely
>toward Asia.
>
>Two events this week highlight Wahid's dual interest. Both involve
>state-owned oil company Pertamina. Wahid sought Brunei and Malaysia’s
>cooperation in exploiting and funding "oil resources and the expensive
>technology involved," but also appointed a new company president, Baihaki
>Hakim, an Indonesian who many Pertamina officials consider "too 
>westernized,"
>reported the Jakarta Post. Baihaki is the former president of American oil
>company Caltex Pacific Indonesia.
>
>Wahid appears willing to bargain with Western oil companies in hopes of
>improving Pertamina's profitability and the size of Indonesia's oil take in
>general. He likely appointed Baihaki with foreign executives in mind. 
>Caltex,
>Baihaki’s former company, is now squabbling with Pertamina over control of 
>an
>oil field in Riau. The appointment accomplishes two things. First, it gives
>Caltex a better bargaining position. Second, it may convince Caltex that 
>with
>more trustworthy management, Pertamina will soon become a more reliable
>business partner.
>
>Yet while Wahid seems interested in partnering Pertamina with Western
>companies, he has conspicuously avoided pursuing U.S. and Australian
>investment. In fact, Wahid seems more interested in focusing his efforts on
>relations within the region than abroad. When he suggested that Indonesia,
>Malaysia and Brunei cooperate on oil, he stressed the importance of their
>"similar heritages." More significantly, Wahid has pursued a close
>relationship with Malaysian Prime Minister Mahathir Mohamad, the most
>outspoken advocate of Asian unity and more importantly of the "Asian 
>economic
>model," which rejects Western-mandated reforms of banking, finance and
>corporate reporting practices. The two leaders will meet in Jakarta in 
>early
>March.
>
>For now, the dual strategy has not caused significant political damage to
>Wahid. However, his choice for Pertamina's new president has drawn some 
>heat
>that may signal potential for future backlash. Irwan Prayitno, head of a
>legislative commission on mines and energy, has accused Wahid of using the
>appointment to pander to American interests. The Indonesian Association of
>Mining Experts has also criticized the choice. Many Indonesians in the
>central government and in the provinces see the giant Western 
>multinationals
>as domineering and exploitative. Pressure to oust them ­ or at least play
>hardball in negotiations ­ will likely grow.
>
>Pursuing investment outside of Asia could pose another problem: 
>Partnerships
>with Western companies may force Wahid to dig deeper into government
>corruption than the country can bear. Pertamina, for example, is infamous 
>for
>the corruption and mismanagement that has racked up more than $4.7 billion 
>in
>losses, according to Price Waterhouse Coopers. Western firms expect more
>transparency in business deals than do Asian firms. Such demands could push
>Wahid to take his anti-corruption campaign too far, too fast, provoking
>backlash from the many officials who still profit from Suharto's 
>kleptocracy.
>At that point Wahid may abandon his dual strategy and set his sights on 
>Asia.
>
>
>
>+++++++++++++++++++++++++++++++++++++++++++++++
>TAPOL, the Indonesia Human Rights Campaign
>111 Northwood Road, Thornton Heath,
>Surrey CR7 8HW, UK
>Phone: 0181 771-2904   Fax: 0181 653-0322
>email: tapol@gn.apc.org
>Internet: www.gn.apc.org/tapol
>Campaigning to expose human rights violations in
>Indonesia, East Timor, West Papua and Aceh
>
>26 years - and still going strong
>++++++++++++++++++++++++++++++++++++++++++++++++
>
>
>
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