JAKARTA, Aug. 28 (Xinhua) -- Indonesian President Susilo Bambang Yudhoyono said that the gas price of Tangguh field in Papua on the contract would cause potential loss for the State, ifit is unchanged, according to local media on Thursday.
"If we manage to negotiate, since I am responsible as a president, I would grasp the responsibility if there is a problem, "the national leading website Detik.com quoted Indonesian President Susilo as saying.
A team will be formed by the Minister of Finance Sri Mulyani, as what has been directed by the president. The tough team will conduct negotiation and supervision.
Susilo said that he had received reports of Tangguh LNG contract. "It was true, if we examined the contract without any revision based on the current price, the government would suffer alot compare with others such as Cepu gas in Central Java," he said.
Although the price has been changed in the year of 2005, it was still not feasible due to the current fluctuation of oil price of 120-130 U.S. dollars per barrel.
"If we don't make good efforts, several contracts would be the same, potential loss. Therefore, we have to renegotiate with good conscience that the state will not suffer," he said, adding that the mining contracts will be attempted if it proves to be unfair.
