Dumai demands payment from Pertamina's processing unit

The municipal administration of Dumai, one of major towns in Riau province, has demanded a payment from the state owned oil and gas company Pertamina for the operation its oil-processing unit in the town in a bid to support its revenue.

The head of the municipality's revenue department Mustafa Kadir told Riau Post that the town's administration was still negotiating with Pertamina about the reasonable amount of the payment that should be given to the municipality.

"We will issue a regulation to allows the municipality to get payment from the oil processing unit," he said, adding that the payment could be in the form of production sharing or contribution.

He said that the regulation would be soon be submitted to the city council for approval. "Once the regulation is approved, Pertamina has no choice but to meet the demand," he added. (*)