ID :
18243
Sat, 09/06/2008 - 10:29
Auther :
Shortlink :
https://www.oananews.org//node/18243
The shortlink copeid
VP ADMITS RENEGOTIATION OF TANGGUH GAS CONTRACT NOT EASY
Jakarta, Sept 6 (ANTARA) - Vice President Jusuf Kalla admitted here on Friday that it would not be easy to renegotiate the Tangguh gas export contract because the price of the commodity had already been set.
However he said through a mutual understanding, renegotiations might be possible.
"The situation has changed and I believe the Chinese government understands the mutual benefits of the two countries. Indeed, it would not be so easy to revise the contract, but with mutual understanding things could be arranged," he told reporters after attending a Friday's prayer.
He said he received a nod from the Chinese for the renegotiations when he met with President Hu Jintao and Vice President Xi Jinping two weeks ago.
He said the Indonesian government continued preparations for the renegotiations including forming a negotiating team for that purpose.
He said the Chinese government understood the Indonesian for renegotiating the contract.
"Negotiations will always start with matters of mutual benefit. One thing is clear, namely that Beijing is already for the talks," he said.
The vice president also said the two countries were aware of the fact that the two countries need each other and therefore no threats would be made on each other during the renegotiations.
The Tamgguh gas export contract involving the Fujian province was signed in 2002 when Megawati Soekarnoputri was Indonesian president.
Under the 25-year contract, Tangguh gas is sold at US$2.4 per mile-mile British Thermal Unit (mmbtu). Through renegotiations the price may be raised to US$3.8 per mmbtu. The vice president however said that the current price was too low and if the contract was continued without renegotiating it, it would cost a loss of up to Rp700 trillion to Indonesia.
However he said through a mutual understanding, renegotiations might be possible.
"The situation has changed and I believe the Chinese government understands the mutual benefits of the two countries. Indeed, it would not be so easy to revise the contract, but with mutual understanding things could be arranged," he told reporters after attending a Friday's prayer.
He said he received a nod from the Chinese for the renegotiations when he met with President Hu Jintao and Vice President Xi Jinping two weeks ago.
He said the Indonesian government continued preparations for the renegotiations including forming a negotiating team for that purpose.
He said the Chinese government understood the Indonesian for renegotiating the contract.
"Negotiations will always start with matters of mutual benefit. One thing is clear, namely that Beijing is already for the talks," he said.
The vice president also said the two countries were aware of the fact that the two countries need each other and therefore no threats would be made on each other during the renegotiations.
The Tamgguh gas export contract involving the Fujian province was signed in 2002 when Megawati Soekarnoputri was Indonesian president.
Under the 25-year contract, Tangguh gas is sold at US$2.4 per mile-mile British Thermal Unit (mmbtu). Through renegotiations the price may be raised to US$3.8 per mmbtu. The vice president however said that the current price was too low and if the contract was continued without renegotiating it, it would cost a loss of up to Rp700 trillion to Indonesia.
