REAKSI AMERIKA SOAL UU MIGAS YANG RUGIKAN RAKYAT INDONESIA -- U.S. Embassy Statement on USAID Assistance for Energy Sector Reform
JAKARTA - This statement addresses recent allegations of improper influence by USAID in assisting the Government of Indonesia reform the energy sector.
Under the terms of its agreements with the Government of Indonesia, the United States provided technical assistance and training for Indonesia as it considered reform in energy sector. These inputs on best practices and international experience on these issues were designed to be helpful and contributed to the Government's process, and all decisions about any changes to law or policy were made by the Government of Indonesia as an output of its own processes.
All USAID funds were utilized and controlled in accordance with USAID regulations, and audited regularly. They were used to cover the cost of the Technical Assistance (TA) teams (long and short term), training and workshops for the duration of the Strategic Objective Grant Agreement (SOGA) (5 years).
In early 1999, USAID was requested by Mr. Kuntoro Mangkusubroto, the then-Minister of Energy and Mineral Resources (MOMR), to help review a draft Oil and Gas Law, which was prepared by the GOI/MOMR, and was rejected by the DPR. This draft law was part of GOI efforts to reform the entire energy sector (oil, gas, electricity, geothermal) to improve its efficiency, and be able to sustain its contribution to support economic growth.
USAID responded positively, and signed a SOGA, with a budget of $4 million a year, and a total budget of $20 million over 5 years. These budgets were for funding the long-term TA teams, short-term TAs, workshops and training. USAID mobilized three TA teams for Oil and Gas, Electricity and General Energy.
USAID helped the Government of Indonesia to review the draft law, in term of its consistency, implementability, and the phases of the implementation. It also helped review the "academic paper" for this law, which explains the reasons, how it would be implemented it and what likely impacts would occur. This academic law became the "Oil and Gas Policy" paper.
The draft oil and gas law was subjected to very intense deliberations by GOI and DPR during the President Yudhoyono's tenure as Minister of Energy, and was enacted in 2001 under current Minister Purnomo Yusgiantoro.
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