INDONESIA - Profile - Purnomo Yusgiantoro.

The Mines and Energy Minister since Abdurrahman Wahid reshuffled the cabinet on Aug. 23, 2000, Purnomo succeeded Rtd. Gen. Susilo Bambang Yudhoyono who took a far more powerful position (see DT). Purnomo's was retained under Mega's presidency. But now the powers of this ministry, which used

Mining companies can no longer negotiate their contracts with the Mines and Energy Ministry. Instead they have to deal with the top local official in the area in which their mine is located. Tax rates in Indonesia are already so high that no significant new mining investment has been made since early 1998. Experts had warned since early 2001 that the mining industry would shrink by 30% within five years.

Born in 1951 in Semarang, Java, Purnomo graduated from Bandung's prestigious Institute of Technology, where it was said he received a scholarship from Total of France. He then pursued a doctorate at the world-renowned Colorado School of Mines and now is regarded as one of the faculty's distinguished alumni.

Purnomo began his career at the Mines and Energy Ministry as an expert staffer. From 1990 to 1992 he worked as an energy consultant at the World Bank. He was also an energy consultant to the Asian Development Bank. Later he rejoined the Mines and Energy Ministry and in 1996 he became Indonesia's governor at OPEC, a position he held until 1998. Later he became adviser to then Mining and Energy Minister Kuntoro Mangkusubroto (who later became CEO of the state-owned power company PLN).

Late in 1999 Purnomo joined the military think-tank, National Resilience Institute (Lemhanas), as its deputy head. His work impressed the political leadership and caught then President Wahid's attention.

Shortly after his appointment as mines and energy minister, Purnomo began studying the Oil and Gas Bill submitted to parliament, under which Pertamina was to lose control over E&P negotiations with other companies and production sharing contracts (PSCs) as well as its monopoly in the downstream sector. He met with Pertamina's high executives and discussed the future of the company. President Mega signed the bill into law in November 2001, after this was passed by parliament in the previous month.