The OIL BARON that BE
IN ON POLITICS from Indonesia
IN ON POLITICS from Indonesia
Before the Baru Order fell in 1998, the Arifin Panigoro name was only known to be limited by the circle as the businessman in the field oils. His social circle more with Pertamina and the businessman oils international. However, when middle reform “Be in third trimester” that was marked by the brightness of the demonstration of the student, the awareness of Arifin politics rose. He became the symbol of the resurgence of the businessman's politics. Not only that, he joined in as well as actively helped the movement of the student, including preparing the lunch pack to be sent to the student who was holding the action in the Building People's Representative Council Senayan, Jakarta. The alumnus Elektro Institut Teknologi Bandung (ITB) this 1973 began his efforts indirectly became the boss in Enraged Epsi Drilling Company (Medco). Before the 1980 's, initially he only as the contractor of the electricity installation door to door.
Further began the project of the pipe fitting on a small scale. Like that had the project that diameter big, that not the portion of the local businessman, but the foreign businessman. So, every time Pertamina carried out the tender for the big pipe fitting, then the foreign company that won because to pipeline needed heavy equipment. The equipment generally only is owned by the foreign company. The condition made him think, better the local businessman was then given by the opportunity or was helped to be able to handle the big pipe fitting and only was not given by the very small work. In 1981 he summoned up courage to begin to enter the project pipes that diameter big. For the work, he co-operated with the foreign company. Deal him, when one project was finished, for results was the equipment. The partner agreed, the project then was finished. Since then with this implement he looked for the project everywhere. Apart from taking the foreign partner, the support and the protection from the government by the hand very much was needed. Was not possible for the local businessman who just did not stand and have the experience suddenly to be able to compete with the foreign company that was experienced in the field oils for dozens of years. Took the outside partner by the hand and the government support was the businessman's local method of could open the door to the wider business field. In this way, the competition could be with the foreign company carried out. All of them were begun from the stage made the local businessman accustomed to doing the big project.
The example that was experienced by him with the Medco efforts flag even in the year 1979-1980 when happening oil the boom, the Secretariat of the Country took the initiative to build the oil refinery because of having the addition of the budget. At the time, the government wanted to slip the element of the management for the local businessman, including Medco. At that time, in the development of the Cilacap Refinery, Medco was married off with one company from the United States. Finally, Medco that did not know anything about the pipe fitting, to understood. Likewise when beginning efforts of oil drilling in 1981, also was not free from help of the government. According to Arifin, the year so the Medco starting point became big. At that time, he had the nearness with the Director General of Wiharso Oil And Gas that wanted had the local businessman in the project of the drilling service. By chance had capital participation of the government to Pertamina, that wanted to carry out gas drilling in South Sumatra. The government pushed him to take part in the tender, although not having equipment drilled. The government called the opportune foreign company won was asked to hire out the implement, or to use Medco people as the partner. The aim of the government at that time was to increase the local businessman. However, the response from the foreign company made Mr Wiharso failed. Then Mr Wiharso asked him to work on the project was alone. Arifin in no way trusted the decision because he did not have the experience of carrying out drilling. Results, he was unstable because the project that was tendered in 1979 must have begun to be done during 1980. With the feeling was, sure he then received the challenge. His beginning stage instructed the staff who had the English capacity to sound out the center of the sale of drilling equipment in AS. Baru after having the assurance and it was known his price, he flew from Jakarta to Houston, the USA. The trip was his first experience to AS. Capital\Tarzan English\and money 300.000 US dollar, he did deal with the owner of the thing. Results, deal took place bad. The seller of the thing ask for in time two thing weeks costing 4 million US dollar has been paid, if not then the deposit 300.000 US dollar scorched. He was forced to accept the condition because of the position of his offer that was ugly. After that he at once flew to Indonesia. Because of the length of the trip with the economic ticket, arrived in Indonesia immediately was sick. However, with his difficult condition tried to meet Bank Indonesia Rachmat Saleh Governor, then to Pertamina. The method was the last step that must be carried out because he was still being the businessman\the baby\. It was lucky, Mr Piet Haryono and Mr Wiharso gave the recommendation, Medco ought to be helped. Dana was then liquid in the agreement threshold. The project could then go in accordance with time that was determined by the government. Towards help that was given by the government, Arifin considered very positive so that the local businessman could compete. However, continued to have to be carried out truly because if could not, so wrong the direction. Here the difficulty, sometimes the protection gave results that were the reverse. Mumpung was given by the protection, the businessman even became spoilt. After clearing efforts in the 80 's, Medco began his glory during 1990. Before 1990 Medco always co-operated with the third party and to enter there not only the problem of consistency in perseverance and normative, but also the line affair of the hands as the determiners. Because, to pursue one oil well not the affair thousands US dollar, but millions US dollar and that then not necessarily came across his oil. However, the wish to be able to independent continued to be available, then in 1990 for the first time Arifin bought the oil well in Tarakan, East Kalimantan, costing 13 million dollar AS. Places could be productive 4,000 barrel per the day (bph). In 1995, bought again the eldest oil well of PT Stanvac Indonesia belonging to Exxon Mobil, that until this of the total production that was owned by Medco reached 80,000 bph. Perhaps this the achievement was brightest from Arifin and his company, Enraged Epsi Drilling Company (Medco). The Stanvac purchase was won through the tender that afterwards his name was changed into Expan. With the purchase, PT Stanvac is no longer controlled by the foreigner because the eldest oil company has in Indonesia been had fully by Medco.
The success it seems because of having the element of the pressure from the government. On these rumours, Arifin explained that he bought the oil company through the tender internationals. To meet directly with his person could not. Just after being finished the purchase, they could really meet. He bought him directly. At that time his reserve only 20 million. Afterwards in 1996 the production was pushed to the limit. Results, one field could get 320 million barrel oil. The success in the field oils evidently made Arifin think other still in the sector of the mine. Why couldn't the local person be successful in gas, as in the case of in oil. In fact Indonesia would one of the producers of biggest gas in the world and many shouting industries the lack of gas? This statement that often made him dejected. If being seen by us in one-sided, Indonesia occupied the position of the number of one in the world in the export of the LNG because of the gas reserve far more a lot of the oil. Currently, the reserve has reached 170 trillion cubic foot (TCF). If the reserve was produced, until 50 years then will not be finished. The gas was outside the Javanese Island, but continue to have to must be brought to the Javanese Island because of how many of his prices stayed interesting. For example PLN, if buying his price gas only 3 dollar per million metric british thermal the unit (MMBTU) has been very luxurious. However, if follow with FUEL OIL be the same as 18 US dollar per barrel. The price was very cheap compared with the price of FUEL OIL that must be paid by PLN as big as 30 US dollar per barrel. However, again, why was gas not in the Javanese Island, this the problem of the policy of the government. So, should Bappenas or the Minister the Ekuin field same think about, continued to depend oil that his price 30 US dollar per barrel. Medco sold to Pusri 1,8 US dollar was increased by the cost of the pipe 0,5 penny dollar, could have been fortunate. To Be Continued
