Govt may consider giving Jambi higher oil, gas revenue

The central government may consider giving the Jambi province a higher portion of revenue from its oil and gas resources as demanded by the province, but only if it could provide strong reasons for the demand, Minister of Mineral Resources and Energy Purnomo Yusgiantoro said.

"Jambi can always propose for a higher share in the revenue sharing mechanism as long as it is backed up with a strong reason," Purnomo told the press on the sidelines of a ceremony in Jambi.

Purnomo was responding to earlier reports that Jambi Governor Zulkifli Nurdin had demanded for a higher portion of oil and gas revenue.

But Purnomo said that his office had not yet received any such proposal from the Jambi administration.

The government launched on January 1, 2001 a new regional autonomy policy under which provinces and regencies can manage their owns social and economic affairs. Under the new policy, the regions will also have 15 percent of the revenue from its oil resources and 30 percent from gas in a revenue sharing mechanism with the central government. The regions can have 80 percent revenue from general mining.

Jambi has demanded a higher share of the revenue from its oil and gas resources to be able to fully finance its greater administrative role and function.(amoros)