Bapepam Not Mixed Up with Medco Affairs
Tuesday, 14 November, 2006 | 17:46 WIB

Tempo Interactive, Jakarta: The Capital Market Supervisory Agency (Bapepam) has affirmed that the step of PT Medco International in taking the Lapindo mudflow case to international arbitration was the bilateral problem between the company and Lapindo Brantas Inc. “Bapepam will not take care of this,” said Head of Bapepam Fuad Rahmany yesterday (11/13) in Jakarta.

Up until now, he said, Bapepam has not yet had an official report from the oil and gas company regarding the Panigoro family. He has only acknowledged that the root of the lawsuit problem lies in the joint of agreement between Medco, Lapindo Brantas Inc., and Santos, that own all areas in the Brantas Bloc.

Medco is the owner of the Brantas Bloc working interest with 32 percent. Santos contributes 18 percent of the working capital. The largest supervisor and working capital holder of the Brantas bloc is Lapindo Brantas Inc, subsidiary of PT Energi Mega Persada, with 50 percent. As of May 2006, the Lapindo mudflow at the Brantas bloc is not yet overcome.

So far, the Jakarta Stock Exchange has not received an official report from Medco. The stock exchange authority said it hoped that an official statement was made concerning the report to international arbitration. “I cannot comment yet. I must wait for the official report,' said Managing Director Erry Firmansyah.

Yuliawati, Padjar
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