Four regions will demand new oil and gas revenue split system

Following a plan to apply new system for oil and gas revenue split between the central and state in Nanggroe Aceh Darussalam province, there is a potential possibility that other four major oil and gas producing areas will also demand the same, the Bisnis Indonesia newspaper reported in its Tuesday edition.

According to the draft law on Aceh administration, which is being discussed at the House of Representatives? Commission II, the 30 percent of the oil and gas revenue will be allocated to central government and 70 percent to the province. Currently it is 85 percent for the center and 15 percent for the province.

This fear was expressed by none other than the Minister of Energy and Mineral Resources Purnomo Yusgiantoro. He expressed this during a meeting with the House?s Commission VII on oil and gas revenue split system in the draft law on Aceh administration.

The potential areas that may demand the same treatment (70:30) with Aceh are Papua, East Kalimantan,Riau and South Sumatra provinces, where huge oil and gas reserves are concentrated.

While answering to the questions of the House members, Purnomo said the new system will be implemented in Aceh precisely because of the political process there though it has economic implications.

?That?s why, if the four regions demand the same thing (revenue split system), they have to also go through a similar political process, Purnomo said without elaborating further. (*)