Remembering Kwik Kian Gie: An Economist Who Rejects The Cepu Block Is Managed By Foreigners

Indonesia's leading economist, Kwik Kian Gie. (ANTARA)

JAKARTA - The oil industry once brought prosperity to Indonesia. Indonesia's development is stretched by its industrial development to infrastructure. This condition makes the lives of the Indonesian people increase.

The potential of the Indonesian oil industry is also seen as bright if Indonesia manages its own oil. In fact, the government of Susilo Bambang Yudhoyono (SBY) has won the Cepu Block managed by a foreign company: ExxonMobil. Kwik Kian Gie also criticized it.

The romance of the oil industry is never forgotten in Indonesian history. Pertamina's existence in the New Order era (Orba) was a witness. Pertamina under the power of Ibnu Sutowo and the New Order is growing everywhere. The company is moving like a supporter of state finances.

The oil business for Pertamina is profitable. A thing that later became the ammunization of Indonesia in building many things. Even though Pertamina was also the culprit in piling up state losses.

The special thing is that the Indonesian oil industry has never lost its attractiveness. Especially during the SBY administration. The government believes that the oil industry can bring profits.

The government views the Cepu Blocks that enter the Blora, Bojonegoro and Tuban areas as one of the largest oil and gas blocks owned by Indonesia. As a result, the government gave permission to ExxonMobil for the management of the Cepu Block. The permit was granted from 2005 to 2010.

Problems arise. The government actually wants to grant additional permits to the company from the United States (US) until 2030. The government believes that the management will bring big profits. However, the narrative is not agreed by many parties.

Oil observers to national figures raced to criticize the government's 2006 move. The government is considered to have the potential to misstep. This condition is because Indonesia's profits tend to be small compared to those brought out by ExxonMobil.

They think it's time for Indonesia to take control of the oil industry itself. Everything is for the sake of big profits that are fully absorbed by the state. This advantage can later be used to increase the lives of the Indonesian people.

However, not a few also support Pertamina-Exxon's sensitivity. This condition is because foreign cooperation is not always considered detrimental. Sometimes it can also be a strategic decision that brings many benefits, rather than harm.

"They never want to understand that the problem is not that easy. In the operation, Pertamina will be actively involved. Supervision of costs will also be carried out in layers. The existence of narrow nationalism voices with a number of oblique accusations reminds me of an expression from Dr Samuel Johnson: nationalism is the last reference of scoundrels. )

"I can only say that Indonesia can become a great nation just by opening up. It could also be by taking advantage of the opportunities opened by this era, and creatively learning from those who have already become an advanced nation," said Rizal Mallarangeng in his opinion in Tempo magazine entitled Block Cepu, Mission Accomplished (2006).

National figures continue to speak. Even though the government continues to dodge. Kwik Kian Gie became the most noisy figure about ExxonMobil's plan to manage the Cepu Block until 2030. The Coordinating Minister for Economy, Finance, and Industry in the Gus Dur era considered Exxon's behavior not good.

Exxon tried to change the cooperation from TAC (technical assistant contact) to product sharing (sharing). This condition will make Indonesia a big loss. Kwik considers the Cepu Block to have 600 million barrels of oil reserves.

He considered this amount to be able to make the whole of Indonesia prosperous. The government's desire to give management rights to Exxon is considered illogical. Indonesia can lose hundreds of trillions of rupiah per year.

Kwik also considers that the government should not only rely on the answers of Indonesian human resources to not be able to carry out major exploitation. Kwik considers it a hoax.

The government considers it to have no nationalism. Kwik also added that what is the use of Indonesia for many smart people who graduated from geological science from the top campus in Bejibun. There are also many oil experts who graduated abroad.

Oil management issues should have been complete. Moreover, Indonesia has been independent for 60 years. This means that Indonesia's human resource development is unquestionable. No need to use foreign hands either.

Criticism from Kwik received the support of all Indonesian people. Likewise with other criticisms of Kwik regarding his rejection of foreign nations managing Indonesian mining. However, the decision remains in the hands of the government. The government also still gives permission to ExxonMobil. Indonesia also loses a lot because of it.

"Yes, he proposed two reports. He said, if Pertamina does it, it will be taken away because the Indonesian nation is famous for being corrupt. Second, the Indonesian nation cannot afford it because it does not have technology and capital. I said we can afford it, because in a joint meeting with the Directors of Pertamina, Pak Baihaqi Hakim (Managing Director of Pertamina at that time) stated that they could. The reason is, so far Pertamina has worked on eight percent of oil land in Indonesia, while the remaining 92 percent is carried out by foreign contractors.

Exxon said, if managed alone, the results would be small because they are not experienced. I said I don't care, because we want to be like you (ExxonMobil). It won't take you hundreds of years either. When you start you have no experience, right? I'm sure I'm not stupid because I can rent any kind of expertise. If I rent it, then the expert will be my employee. We will not invite you as an employer," said Kwik as written in a Tempo magazine report entitled Kwik Kian Gie: Masa, National Leader Says I can't afford (2006).