Natuna demands raise in oil and gas revenues

A community group from gas-rich Natuna regency in Riau has demanded for a higher proportion of revenue from oil and gas, the local Riau Post daily reported on Tuesday.

The group including Natuna regency councilors, traditional community leaders and students, questioned why the regency administration received only Rp95.392 billion in revenue from the two commodities (US$=Rp9,200) in the 2003 fiscal year.

It wanted the amount be increased to at least Rp841 billion, saying that the amount was based on the calculation made by Natuna Oil and Gas Team, a Natuna-based independent group. The calculation was in accordance with Law No. 25 Year 1999 on revenue sharing mechanism between the central government and regional government.

The demand was made during a meeting between the grouping and the director of oil and gas revenue of the Ministry of Finance, Sahala L Gaol, in Jakarta on Monday.

Natuna exports natural gas to Singapore and Malaysia through pipelines.

Existing laws stipulate that gas producing provinces receive 30 percent of government gas revenues, while oil producing provinces are entitled to 15 percent of government oil revenues. (*)