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Hatta clarifies Prabowo's use of 'leakages'

Source
Jakarta Globe - June 30, 2014

Muhamad Al Azhari, Jakarta – Vice presidential candidate Hatta Rajasa clarified a question by rival Jusuf Kalla on what Prabowo Subianto repeatedly said when the nation suffers "leakages", or losses, with up to Rp 3 trillion ($248 million) per day saying that the reference was to money lost, including from less profitable contracts of the nation's natural resources.

Prabowo said in previous debates that Indonesia suffers up to Rp 1,000 trillion in losses a year, and he has been criticized for not making clear what he was referring to. His comments also undermined the current government under President Susilo Bambang Yudhoyono, of which Hatta was part of the cabinet as chief economics minister in the second term.

"I am clarifying for Mr. Prabowo. Our presidential candidate did not say the leakage was from the state budget. How can it be possible? Our state budget [spending] is only around Rp 1,800 trillion," said Hatta.

Hatta went on to say that Prabowo was referring to potential loss in state revenue if the country keeps selling raw materials, namely if the country cannot negotiate better terms with buyers of the nation's natural resources.

"If we sell raw materials, we will not get any benefit of selling value added [goods].... If we don't manage our natural resources well, if we sell our gas, our coal at low prices compared to the market and we cannot do renegotiations, then we suffer potential losses," said Hatta.

Hatta was head of the government's team is tasked with renegotiation of contracts with some foreign companies, including with US gold mining giant Freeport-McMoran Copper & Gold and Newmont Mining.

Kalla also asked of other sensitive issues, as to whether the Prabowo-Hatta ticket refers to leakages caused by mafias, including oil mafias, sugar mafias, meat mafias.

Hatta answered in a normal tone: "Mafia, or whatever it is called, whether in oil, and other things is a crime. We must let that be handled by law enforcers."

In previous occasions, Kalla often mentions that there is mafia that benefits from Indonesia's oil and gas imports, a factor as to why Indonesia keeps importing oil. He last made that reference on June 20, when both pairs of candidates faced each other in a forum sponsored by the Indonesian Chamber of Commerce and Industry (Kadin).

Indonesians go to the polls on July 9, with either Prabowo or Joko poised to become president, succeeding Yudhoyono, whose second five-year term ends in October.

Source: http://www.thejakartaglobe.com/news/hatta-clarifies-prabowos-use-leakages-citing-less-profitable-resources-contracts/

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