Arifin Panigoro THE OIL KING AND POLITICIAN

Indonesia Famous

Arifin Panigoro

Before the New Order collapsed in 1998, Arifin Panigoro a limited circle only known as an entrepreneur in the field of petroleum. Circle of more interaction with Pertamina and the international petroleum business. However, when the reform was "an old pregnancy" which is marked by widespread student demonstrations, political awareness rose Arifin. He has become a symbol of political resurrection entrepreneurs. Not only that, he participated actively assist the movement of students, including preparing lunch pack to be sent to students who were staged at the Parliament House Senayan, Jakarta.

Electro Alumni Institut Teknologi Bandung (ITB) in 1973, started its business not directly be the boss in Meta Epsi Drilling Company (Medco). Before the 1980s, he initially just as an electrical installation contractor door to door. Furthermore, the pipe installation project started a small scale. Once there is a project of large diameter, it is not serving the local businessmen, but foreign businessmen. So, every Pertamina make a tender for the installation of large pipes, then the foreign company to win because pipaline need heavy equipment. The equipment is generally owned only by foreign companies.

Condition that made him think, local entrepreneurs should also be given the opportunity or be assisted to be able to handle large pipe installation and not just given a small job. In 1981 he ventured to begin to enter the large-diameter pipeline projects. For that job, he worked with foreign companies. Deal him, when one project is finished, the result is that equipment. Partner agrees, the project was completed. Since then with the tool he was looking for projects everywhere.

In addition to holding foreign partners, support and protection from government is essential. Not possible new local businessman standing and no experience can suddenly compete with foreign companies with experience in an oil field for decades. Together with external partners, and government support that is how local entrepreneurs can open the door to broader business sector. That way, competition with foreign companies can be done.

Everything starts from the stage familiarize local entrepreneurs working on large projects. Examples are experienced with the flag of Medco business in 1979-1980 occurred during the oil boom, the State Secretariat took the initiative to build oil refineries because no additional budget. At that time, the government is willing to insert the element guidance for local entrepreneurs, including Medco. At that time, in the Cilacap refinery development, Medco mated with one company from the United States. Finally, Medco who do not know anything about the installation of pipes, to be understood.

Similarly, when oil drilling began operations in 1981, is also not free from government assistance. According to Arifin, the year that's a great starting point for Medco. At that time, he has a closeness with the Director General of Oil and Gas Wiharso who want a local businessman in the drilling project. Incidentally there is a capital investment the government to Pertamina, which would make drilling for gas in South Sumatra.

The government encouraged him to join the tender, although it does not have the equipment ngebor. The government summoned the opportunity to win foreign companies are required to lease the equipment, or use Medco people as partners. Government aim then was to raise local entrepreneurs. However, the response from foreign companies that make Mr. Wiharso tersingung and void. Then ask Pak Wiharso working on that project alone. Arifin did not believe the decision because he did not have the experience to do the drilling.

The result, he was at a loss because the project was tendered in 1979 to start work in 1980. By feeling confident, he also received the challenge. Early stage he has instructed staff to explore the ability of the English language centers in the U.S. drilling equipment sales. Only when there is certainty and known price, he flew from Jakarta to Houston, USA. It is his first trip to the U.S. experience. Have capital of English "Tarzan" and the money 300 000 dollars, he made a deal with the owner of the goods. Result, the deal went badly.

The seller of goods requested within two weeks worth of goods to U.S. $ 4 million has been paid, if not then advances 300 000 U.S. dollars sunk. He was forced to accept that condition because of the bad position of his offer. After that he flew to Indonesia. Because of the length of the trip economy ticket, arrived in Indonesia immediately sick. However, with the harsh conditions he tried to meet with Governor of Bank Indonesia Rachmat Saleh, then to Pertamina.

The way it is the final step that must be done because he is still the entrepreneur "baby". Lucky, Mr. Piet Haryono and Pak Wiharso provide recommendations, Medco should be assisted. No liquid funds in the agreement threshold. The project could run as a specified time the government.

Against the government's assistance, Arifin assess very positively so that local entrepreneurs can compete. However, remains to be done right because if you can not, so misguided. This is where the difficulty, sometimes the protection it gives the opposite result. While given protection, employers actually become spoiled.

After pioneering efforts in the 80s, Medco began its glory in 1990. Before the year 1990 Medco always work together with third parties and to get in there is not just a matter of normative consistency and perseverance, but also matters as a determinant of the hand line. Because, to hunt down one of thousands of oil wells does not concern the U.S. dollar, but millions of dollars and even then not necessarily see the oil.

However, the desire to remain independent, then the year 1990 for the first time Arifin buy oil wells in Tarakan, East Kalimantan, worth 13 million U.S. dollars. Field was capable of producing 4000 barrels per day (bpd). Year 1995, buying more oil wells belong to the oldest PT Stanvac Indonesia ExxonMobil, which until now owned by Medco's total production reached 80 000 bpd.

Perhaps this is the most glorious achievements of Arifin and his company, Meta Epsi Drilling Company (Medco). Stanvac purchases through a tender which was won then it was renamed to Expan. With that purchase, PT Stanvac no longer controlled by foreigners because of the oldest oil company in Indonesia that has been wholly owned by Medco.

The success was presumably because there is an element of pressure from the government. On the issue, Arifin disclose that he bought the oil companies through international tender. To meet directly with the person just can not. Only after completion of purchase, they can actually meet. He bought it directly. It was backed up just 20 million. Then in 1996 production was encouraged. The result, the field one could get 320 million barrels of oil.

Success in an oil field Arifin think it makes the other is still in the mining sector. Why local people can not prevail in the gas, as in oil. In fact one of Indonesia's largest gas producer in the world and the many industries that scream shortage of gas? This statement is often made him restless. If we see on the one hand, Indonesia is ranked number one in the world in exports of LNG due to much larger gas reserves than oil. Now, the reserve has reached 170 trillion cubic feet (TCF). If reserves were produced, up to 50 years would not have been discharged.

Gas was outside of Java, but still must be brought to the island of Java, because any price is still attractive. PLN example, if you buy gas only cost three dollars per million metric british thermal unit (MMBTU) is very luxurious. However, when synchronized with the fuel equal to 18 dollars per barrel. The price was very cheap compared to the fuel price to be paid by PLN at 30 dollars per barrel.

However, again, why is gas not in Java, it's a matter of government policy. So, it should Bappenas or the Minister of Economy the same thought, if oil prices continue to depend 30 dollars per barrel. Medco to sell to Pusri 1.8 U.S. dollars plus the cost of 0.5 cents a pipe, was able to profit.

This is what he considers the policy was wrong. Similarly, projects built by PT Perusahaan Gas Negara, which successfully connect to pipe gas to Singapore, after it was built pipeline to the island of Java is the wrong policy. Gas in South Sumatra is actually not much longer, so it should be taken to Java. But perhaps the government has the consideration of price in Singapore is probably better.

Success in the business world make it go adventuring into the world of politics. At first he held a meeting at Hotel Radisson Yogyakarta in 1997. Actually it is a regular meeting or discussion. However, the effect was remarkable, especially for Arifin. He was accused of trying to thwart the General Session that will authorize President Suharto became the seventh time.

When the action heats up more and more students, Arifin consumption provide assistance to the demonstrators who did the action in the Parliament Building. Thousands of boxes of food delivered. No wonder if then appeared opinion that Arifin is a character on the back of the action or the barons of the students. However, Arifin know that he is not alone. Reform movement is a twist to make things better.

The temptation to step in the political world is still continuing. In the era of President BJ Habibie, Arifin Panigoro again snared by allegations of corruption criminal misuse of commercial paper worth more than Rp 1.8 trillion. At that time, a number of people believe dijeratnya Arifin because of its proximity to the student movement. Even during the rule of Megawati, Arifin again attempted to be snared by the prosecutor's case. Since the beginning, he was sure only dikerjain because there are many parties who are not happy with the political activity that was involved.

His experience as a businessman made him not surprised by the political practices because in it there or working on lobbying activities, as well as money politics. For him, these days money is his business. From beginning to work as an entrepreneur, he never made a deal with the facilities available.

Similarly, political affairs are also part of the compromise cross-faction, the agreement of all the power. So things do not always use the money, just understanding that we have something bigger, let's live together. However, the journey is not always smooth, many temptations. Especially now that the political power of the Soeharto era, all relatively new players.

Although accustomed to playing with money, but Arifin claimed to have restrictions in play money. Unfortunately, the political process or political decision-making process, it turns out that money speaks. In fact, even though he was a businessman, but he wants a business without money. Although he confessed, the way the business was not as clean as in the U.S.. In the country, treats to eat at the 100 U.S. dollar bribe is included categories. He was not so great, but longed for good government and corporate governance, in order to make this nation a better future.

He is counting, today, the money spent on anything. He will calculate how much total money spent in local elections in Indonesia, which will burden the budget of each region. Do not forget, it's public money from taxes. If the leaders play, certainly inflate the project funds, of subordinates also took part. Thus, the position could lead to corruption due to a chain effect, if the funds are siphoned off to Rp 1 trillion, that public money would be lost around Rp 10 trillion for the election of regional heads.

More in-depth introduction to the world of politics is when the new parties emerged in 1998-1999 after the resignation of Suharto from the presidency. At first, Arifin relationships with various political figures, both community leaders who had long known and newly emerging leaders. When the declaration of the new party was held, Arifin often attend. However, the choice finally fell to the PDI-P led by Megawati Sukarnoputri. Together PDIP, Arifin had strolled toward Senayan as a member of parliament.

For the category of new players in the world of politics, actually spelled Arifin good political career. He could sit in the ranks of the DPP party winning most votes in elections. He never led the cross-faction, also the Chairman of the Assembly PDIP. However, the political world is like a fast-changing weather. Arifin, who is often known as the son of "homestay" in the party that fat red bull berlambang considered to have less loyalty to his party and sided with opponents began his political party heads.

Arifin Panigoro once regarded as the inspiration of President Megawati smooth development path toward the presidency, is now regarded as a bad child. Arifin was widespread that the issue would be fired. However, until recently, the issue did not bear fruit to become a reality.

Of the issue, he argues that he was issued, it looks like he should make a farewell ceremony with friends. But, actually he was thinking of getting out. According to him, if released he would be more pleased. As working people, if you can not stop severance pay if laid off will be of severance. Although ready to quit, but about his political future remains unclear, and he still could not figure out where to dock. That's because from 1998 it includes the non-partisan, although later merged into the party. Initially, it came at the opening ceremony of each new party, until finally joining the PDIP.

Arifin considers himself as an opportunist who idly. Or he just wants to have another five-year period, not just being a definite pengusaha.Tetapi, hematnya, ridiculous if stopped and then immediately against PDIP, let alone want to topple Megawati.

If you really retreated from the political world, it's likely he'll relax and play golf in Paris or looking for a special school for those who are already old in the city that have a nice meal. Maybe six months of rest.

He was also among those who respect Islamic scholars Noercholish Madjid (Cak Nur). According to him, Cak Nur was not a politician, but interested to be president. When first revealed his interest became president Arifin including those who come early and ask, apparently the answer is not. He thought, whoever this, she was from a different element than the other politicians. Thus can be a measure of morality, because morality must also be measurable. At least, politicians are a little shy. So, the nomination of Cak Nur, can actually improve the quality of the match.

Regarding family life, the husband of Raisis A Panigoro quite happy. Her children are grown, even the oldest Maera Hanafiah soon married and endowed with a second child. As the youngest of Jasher Mairi was added to education in Singapore in the IT field. Now, although a bit late, he realized that if he failed to give attention to children, because of working hours inconsequential. Now, since overseas schools, the kids seemed to forget the elderly. Although the children go to school abroad, but none that specifically prepared place. First child of a housewife, a second child was not prepared for it. Principally, Medco's not a family company, so you'd better run by a professional. Incidentally, his brother the oil. So sit Medco Hilmi Panigoro.

He also will not force the children to continue the efforts of his parents. If the capacity is full, go ahead if you want to continue. He claimed to not be afraid if the company is held by others, yet all of the assets, reserves are not going anywhere.

Although it has now become "oil king", the husband of Raisis A Panigoro was admitted, rich is relative. He admitted that he had never counted, whether he is rich or not, because all life is lived kept rolling. For him, it is called a rich relative, if in Indonesia, as he was already prominent. As one who was banned several times for travel abroad, he asked for what this wealth.

As a romantic, he admitted feeling really rich, if you are in a music concert that really liked. Like today, after enjoying the strains could Javanese gamelan, each heard Javanese music before bed, she felt rich. So rich is quite simple for him, not the abundant wealth or power.

Arifin also realize, someday she will retire as an oil man. However, it does not mean he will keep silent. He planned to focus to another Medco is in the field of agribusiness. Nowadays many people are talking about agriculture. The problem of cooking oil which is still less of its oil palm. Maybe it was one of the ports that will be headed next.

Arifin Parigoro, indonesian famous people