MEF | Change in Ministries: What attitude should new ministers Jose Arista and Romulo Mucho have? | Minem | Economy | Energy and Mines | Tina Poluiarte | Alberto Otterola | economy

Yesterday, Tuesday, President Tina Polwart administered the oath of office to the new ministers of Alberto Otorella's cabinet. Among them is Jose Arista as head of the Ministry of Economy and Finance (MEF), replacing Alex Contreras, and Romulo Mucho in the Department of Energy and Mining, replacing Oscar Vera.

As for Contreras, he left the post in the first week of January after rumors swirled in January. In this case, Arista met with President Tina Polwarte along with former Economy Minister Luis Carranza.

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Contreras' administration in the MEF was marked by shocks that affected the country's development dynamics: he faced social conflict and weather events in early 2023. Faced with this, from MEF A variety of package activities were launched, focusing on the Con Punche Perú and Unidos projects.

However, contrary to the economic growth expected by Contreras, the gross domestic product (GDP) will fall in the eight months of 2023, pending the publication of the December figure by the National Institute of Statistics and Information (INEI). Added to this is the belated recognition of the country's economic slowdown.

“We have created the conditions for recovery [económica]But it is necessary to keep moving forward on the agenda of growth and restoration of confidence“Contreras' words as he leaves the swearing-in of new ministers.

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As for Vera, her administration as its owner Ministry of Energy and Mines (Minem) was a challenge to promote mining projects and implement a digital single window for mine inspection. But it had to respond to Petro-Perú's financial problems and financial bailouts requested by the public company.

Likewise, the administration had the intention of temporarily handing over I, VI and Z-69 located in Talara to Petro-Peru, directly to the state oil company.

New ministers

The experts of this newspaper pointed out that the new ministers have experience and a track record. As for Arista, he was Deputy Minister of Finance between 2006 and 2007, Minister of Agriculture between January and April 2018, and Head of the MEF in the brief government of Manuel Merino.

In addition, he was the regional head of Amazonas between 2011 and 2014. It gives you a central and regional perspective., said Carlos Casas, senior professor of economics and Universidad del Pacifico. “It will help a lot to increase spending with regional and local governments,” he noted. He opined that this profile is likely to have a positive reaction from the markets.

For Jessica Luna, Executive Director of the Foreign Trade Association of Peru (ComexPerú), there are four priorities that the MEF must take into account. These are Restore leadership and coordination with different production departments And the institution must comply with the gradual application of the increase in the selective consumption tax announced by Contreras.

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It was also a priority, Luna pointed out, Improving and implementing efficiency of public expenditure, an aspect that can be strengthened with a strengthened program of managers at various levels of the country, especially in subnational governments; And steps should be taken to restore confidence in the sector.

This should include increasing the tax base, promoting large investment projects and resolving the Petro-Peru situation, Casas added.

Precisely, in this search for more investment, the participation of Mineum was also important, now led by Romulo Mucho. “He knows the mining sector,” said Carlos Gálvez, former president of the National Association of Mining, Petroleum and Energy (SNMPE), in addition to being deputy minister of mining between 2005 and 2006.

As Gálvez explained, it is not only a promoter of mining investment, but it can also contribute to the management of relations between the community, the government and the company, and to remove the obstacle of 'red tape' in the sector.

“The first signs that Mucho will be the minister will let us know if he is actually going to promote the plans. He is an energetic man”, he revealed.

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Another point is that, in addition to the incentive for mining investment, oil will be a lot of incentive. Precisely, on the hydrocarbon issue, Casas indicated that both MEF and Minem should work hand in hand for the restructuring of Petro-Peru.

Similarly, Mucho should also work to accelerate natural gas expansion in the country, Felipe Conturias, president of the Peruvian Hydrocarbons Association, said in a statement.

The third cabinet change was in the Environment Ministry, where Albina Ruiz was replaced by Juan Carlos Castro. Prior to this appointment, Castro was the head of the National Water Authority (ANA). For this reason, Gálvez considered that someone experienced in environmental management is appointed and that it does not create unnecessary obstacles.