Local regency demands participation in gas pipeline project

The local West Tanjung Jabung (Tanjab) regency administration in Jambi province has demanded a stake in the gas pipeline project of the state-owned gas distribution firm PGN in a bid to help increase the source of revenue for the administration.

Tanjab Regent Usman Ermulan made the demand in a letter dated Sept. 5 to PGN, a copy of which was obtained by Petromindo.com.

?If the demand for a stake (in the project) can not be realized, PT Perusahaan Gas Negara (PGN) should not continue the project activity in the West Tanjung Jabung administrative area,? Usman said.

PGN is developing a gas pipeline to be able to deliver gas to Singapore. The pipeline project, which is expected to be completed by 2003, passes through the Tanjab area.

The introduction of a new regional autonomy law in late 1999, which provides regencies and mayoralties greater autonomy in managing their economic affairs, have created certain difficulties for businesses as some regional government implemented the autonomy status excessively.

Usman said in his letter that the equity participation in the gas pipeline project was needed to help raise more revenue for the administration in financing various development programs.(Epin)