Jambi to receive Rp 56 billion a year from oil, gas operation

Jambi province will receive at least Rp 56 billion (US$1=Rp 11,300) from the province?s oil and gas activities this year, according to Givernor Zulkifli Nurdin.

The governor said that the money would be part of the province?s shares from state revenues raised by the government from the province?s business activities.

?The central government has approved the Rp 56 billion allocation but details would be still debated by the House of Representatives in Jakarta,? he was quoted as saying by Sriwijaya Pos on Tuesday.

The governor said that this year the province?s revenues from business activities such as oil, gas and plantations would be much higher than those in the previous years thank to the implementation of the autonomy law early this year.

He said in the past, the province?s revenues from such operations were very small and even often went to other provinces.

Under the new autonomy law, the local administration will receive 15 percent of the government?s share in oil production and 35 percent from gas production.

The government?s share in the oil production is about 85 percent and 65 percent in gas production. The rest go to contractors. (*)