Indramayu questions its income portion from oil and gas sector
Wednesday, January 24 2001 - 04:30 AM WIB
The Indramayu district administration, West Java, questions the procedures of income distribution and size of income portion it is entitled to from oil and gas exploration and exploitation activities in the regency's areas.
Indramayu deputy regent Dedi Wahidin said on Tuesday (Jan. 23) that his administration received Rp 21.6 billion from the central government for its income portion from the exploitation of natural resources in the regency. In addition, Indramayu also received Rp 219.6 billion of general allocation funds from the central government.
Speaking at a seminar on fiscal balance between central and regional governments, Dedi noted that the income portion from the exploitation of natural resources in Indramayu was too small, considering that Indramayu had oil and gas resources currently exploited by state oil and gas company Pertamina and also oil refinery in Balongan run by Pertamina.
He demanded the central government give clear explanation on why Indramayu that hosts oil and gas exploitation facilities and oil refinery got such a small portion of income from the exploitation of natural resources.
In addition, the amount of general allocation funds provided by the central government to Indramayu was so small compared with those received by other district administrations in West Java, Dedi added.
"After making comparison with other district administration in West Java province, we realize that the general allocation fund we get is far smaller than those received by other district administrations," Dedi said.
Responding to Dedi's demand for explanation, the director of oil and non-tax income at the Ministry of Finance, Sahala Lumban Gaol, explained that the central government could not yet give clear explanation on the portion of income from natural resources the central government distributed to district administrations mainly because of lacking in mapping of natural resources in each district administrations.
"We are inhibited by problem of marine mapping in Indramayu because most of oil fields claimed by Indramayu are located off shores, and not on shore. Therefore, the calculation we have given to district administrations is more like assumption and rough prediction," Lumban Gaol said.
He also explained that district administrations such as Indramayu should know the components in the calculation of income split from natural resources, such as production costs components and rupiah's exchange rate.
Speaking at the same seminar, Lumban Gaol promised that the central government would provide transparent and clear data on the calculation of income split.
Meanwhile economist Robert Simanjuntak from the University of Indonesia suggested that the central government socialize the calculation of income split to all local administrations to prevent future misunderstanding. (*)