Jambi people remain in poverty despite petrodollar revenue

Oil production of the Jambi province has been steadily on the rise over the past ten years but the rise in the oil production had thus far failed to improve the local people's welfare, according to Kompas daily.

People living around the oil fields or the oil pipelines transporting the province's oil output to the Plaju refinery in the neighboring province of South Sumatra remain in poverty despite the increase in the oil output, as most of the oil earnings go the central government and state oil and gas company Pertamina and its contractors.

The daily reported the province's oil production rose to 24,465 barrels last year from 2,000 barrels in 1990. Pertamina's production sharing contractor Santa Fe accounted more than half of the province's 2000 oil production with 15,791 barrels, while the remaining oil crude came from Pertamina's Hulu Jambi production unit (1,678 barrels), Pertamina-Gulf Joint Operating Body (JOB) (5,926 barrels) and Pertamina-BWP Technical Assistance Contract (TAC) (1,070 barrels).

This year, oil production is projected to further increase to 33,759 barrels, including 23,334 barrels from Santa Fe; 6,339 barrels from Pertamina-Gulf JOB; 1,678 barrels from Hulu Jambi; 1,327 barrels from BWP-Meruap TAC.

Pertamina's Hulu Jambi unit operates oil fields in Petaling, Setiti and Sengiti, all in the Muaro Jambi regency; and in Bunginbatu, Betung, Rengan Condong, all in the Batanghari regency.

Santa Fe Resources Jabung Ltd operates the North East Betara and North Betara oil fields in the Tanjung Jabung Barat regency and the Gemah, North Geragai and Makmur oil fields in the Tanjung Jabung Timur regency.

BWP Meruap TAC operates an oil field in Meruap, the Sarolangun regency; while Pertamina-Gulf JOB operates oil fields in Kenali Asam of the Jambi town, Tempino, in the Muarojambi regency, as well as Bajubang in the Batanghari regency.

Kompas reported workers at the fields are mostly migrants from South Sumatra, Jakarta and Java, while local people, who are lucky enough to land jobs at the oil companies, serve only as security guards due to the alleged lack of skills.

As a matter of fact, the oil and gas companies have provided community development program to help raise the locals' welfare. In 2000, funds for the CD program amounted to Rp 1.97 billion (US$1=Rp 11,200), including Rp 461.58 million from Hulu Jambi, Rp 836.69 million from the Pertamina-Gulf JOB, 31.19 million from BWP Meruap, and Rp 628.04 million from Santa Fe and Rp 15 million from Pertamina's oil depot.

This year, the companies have allocated a total of Rp 3.14 billion for the CD program, including Rp 1.12 billion from Hulu Jambi, Rp 385 million from Pertamina-Gulf JOB, Rp 35.55 million from BWP Meruap, Rp 1.38 billion from Santa Fe and Rp 15 million from Pertamina's oil depot, according to Pertamina's general manager in Jambi Suprijanto.

However, Suprijanto said the results of the CD programs were unclear, except for the program conducted by Santa Fe.

The fund provided by Santa Fe have been used to buy uniforms and bags for primary school students and teachers, to improve primary school buildings, village offices, mosques, to teach English.

Jambi governor Zulkifli Nurdin has asked heads of the province's oil producing regencies for supports to stop the transportation of the province's crude oil to the South Sumatra's Plaju refinery to pressure the oil companies and the central government to give larger shares of the oil revenue to the province.

Head of the province's planning body Firwan Tan has even proposed to cut the oil pipeline to put greater pressure on the oil companies and the central government. (*)