Jambi adm must have a stake in every investment in the province
Monday, February 19 2001 - 04:30 AM WIB
The Jambi administration, representing Jambi people, must have a stake in every investment exploiting natural resources to avoid exploitation of natural resources by businessmen while local people are left behind, according to Jambi governor Drs. Zulkifli Nurdin MBA.
Zulkifli noted that the provincial administration was demanding an initial ownership of 10 percent to 20 percent in every natural resources investment in the area, with an option of increasing the stake up to 51 percent.
"I'm, as the governor of Jambi, spearheading efforts to include the provincial administration in the ownership of every investment that use natural resources in this area," he said.
"If there is no stake owned by the provincial administration, on the other hand, natural resources have been distributed to and controlled by investors, how we can control our resources. The people do not know what they (investors) will do with these natural resources," he said.
Citing an example, Zulkifli said that for the first time in Indonesia, the Jambi administration owns a stake at the Kerinci water-powered power plant, also known as Kerinci Tirta Air power plant.
In this project, the Jambi administration owns 15 percent stake, state electricity company PT Perusahaan Listrik Negara (PLN) controls 35 percent, a Norwegian electricity company 35 percent and national company PT Binatek 15 percent. (*)