48 regencies threaten to block oil and production activities
Tuesday, May 28 2002 - 02:55 AM WIB
The decree signed by Minister of Finance Boediono on May 26 determines that the portion of oil and gas production that goes to producing areas is between two and three percent, while according to the new oil and gas law, the share of producing areas is 15 percent for oil and 30 percent for gas.
Managing director of FKDPM, Drajat Hadiwijoyo said in his office on Monday that the forum gave the government until June 1 this year to revoke the finance minister?s decree, if not all members of the consultation forum would halt oil and gas production activities in their respective regencies.
He said that labor union, and state owned oil and gas company Pertamina had agreed to support the plan to stop the oil and gas production activities.
Meanwhile Director General of Oil and Gas Rachmat Soedibyo said that he did not about the finance minister?s decree. But he said that the portion of oil and gas production that must go to provinces is clearly stated in the new oil and gas law.
According to the new oil and gas law, 15 percent of oil production goes to producing province. Of the total, 6% for regency where oil and gas production activities are located, the other 6% is equally split among other regencies in the province, and the other 3% for the provincial administration.
For gas production, the regency where the gas production is located has the right to get 12% of the gas production. The other 12% for non-producing regencies, and the remaining 6% for the provincial administration. (*)