Aceh receives Rp 2.47 trillion from oil and gas

After being changed for several times, the ministry of finance finally decided to give Aceh Rp 2.471 trillion from the production of oil and gas in the province, local newspaper Serambi Indonesia reported from Banda Aceh on Thursday.

The final decision was made after a meeting between leaders of the House of Representatives (DPR), Minister of Finance Budiono and Minister of Energy and Mineral Resources, Purnomo, in Jakarta on Wednesday afternoon.

The new amount was fixed after being changed at least four times. Previously the government decided the share of Aceh from oil and gas production in the province amounted to Rp 2.5 trillion, than Rp 1.8 trillion before coming with the new figure. The newspaper, however, did not unveil if the money was taken from the realized oil and gas production from January to April or May.

Governor of Aceh Abdullah Puteh said the decision was not final because the ministry of finance had not yet officially informed the local government about the change. "I see it only as an estimation," he said, adding that the figure could change again.

"We will continue to fight for a fair share and will try to get information about the volume of oil and gas production from contractors, their exports and the prices," the governor added.

Earlier 48 members of the Consultation Forum of Oil and Gas Producing Regencies had threatened to block oil and gas production activities in their respective areas if the government refused to withdrew Finance Minister?s Decree No: 214/KMK.026/2002 on oil and gas production shares for 2002, which they said violated the oil and gas law.

According to the decree signed by Minister of Finance Boediono on May 26 , 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.

The 15 percent and 30 percent share are taken from the government?s share from total oil and gas production in each area. Most of the oil production activities in the country are carried out by private oil companies under a production-sharing contract. The government generally receives 85 percent from oil output, and 65 percent from gas production, while the remaining 15 percent from oil and 35 percent from gas go to contractors. (*)