Disbursement of oil and gas revenues to provinces delayed
Tuesday, July 19 2005 - 02:34 AM WIB
Rizal Danoes, the spokesman for the consultation forum for oil and gas producing provinces (FKDPM), said that based on the assumption in the 2005 state budget, the provincial administrations would receive Rp 2.28 trillion from state oil and gas revenues for every three months of the year.
"The oil and gas revenues should have been disbursed 15 days after the calculation of the oil and gas exports for every quarter of the year were completed," he said. "The calculation for the first quarter of this year had been made but the central government had yet to disburse the money," he added.
According to the existing regulation, oil and gas producing provinces have the right to get 15 percent from the government's share of contractors' oil production, and larger percentage from gas production. The government gets 85 percent of contractors' revenue from oil production and 70 percent from their gas revenue.
For the first quarter of this year, East Kalimantan , for example, has the rights to receive Rp 133.144 billion from oil production and another Rp 807.131 billion from gas production, while Riau should receive Rp 709.674 billion from oil production.
Other oil and gas producing provinces such as South Sumatra has the rights to receive Rp 50.951 billion from oil production, and Rp 98.559 billion from gas production, while the province of Riau islands should receive Rp 24.468 billion from oil production and Rp 14.078 billion from gas production.
Rizal said that the delay in the disbursement of the oil and gas revenues has caused serious liquidity problem to most of the oil and gas producing provinces. (*)