North Aceh says oil, gas revenue split unfair

Speaker of the North Aceh regency legislative council (DPRD) Saifuddin Ilyas said that the proposed revenue split formula from oil and gas resources in the province was unfair.

Saifuddin was quoted by the local Serambi Indonesia daily as saying that oil and gas producing regency administration should get a 40 percent portion, the provincial administration 20 percent, and the remaining 40 percent to be distributed among non-producing regencies.

According to the proposed revenue split formula currently being debated by the provincial legislative council, oil and gas producing regency only gets 25 percent, while the provincial administration gets 40 percent, and the remainder 35 percent split among non-producing areas.

Speaking in a seminar Tuesday in Lhokseumawe, Saifuddin said that North Aceh particularly should get a much greater revenue portion because it has a huge number of poor population, high unemployment rate, and has been the center of conflict in the province.

The paper also said that many participants supported Saifuddin?s view, with some even calling for the establishment of a new separate province if the oil and gas-rich North Aceh does not obtain a greater revenue portion.(*)