Local parliament calls on Bontang administration to take over Badak NGL port

Speaker of the local Bontang House of Representatives M. Rusdin Abda'u called on the local Bontang administration in East Kalimantan to "take over" the port operated by gas company PT Badak NGL. Co. and fertilizer company PT Pupuk Kaltim.

The local Kaltim Post daily quoted Rusdin as saying that under the new regional autonomy era, the local administration can take over management of the port in a bid to help increase local administration revenue.

The paper did not provide further details about the take over plans.

But the calls by Bontang top legislator to take over the Badak NGL port may create new fear among investors in the mining and energy sector

The government launched the new autonomy law in early January, giving provinces and regencies a greater administrative power in managing their own social and economic affairs. The policy is also aimed at easing pressure from rich provinces to disintegrate from Indonesia.

But the autonomy policy has created jitters among investors particularly over concern that the provincial and regency administrations would be too aggressive in carrying out their greater power including raising taxes aggressively or annulling earlier contract set with the central government in Jakarta.(*)