Oil, gas and mining firms should be headquartered in E. Kalimantan: Governor

Beginning 2011, companies involved in mining, oil and gas activities in East Kalimantan must eastablish their headquarers in the province, according to the province?s governor.

Awang Faroek said in the province?s capital Samarinda last week as quoted by local media Tribun Kaltim that the provincial government was drafting a bylaw which would among others require companies involved in mining, oil and gas activities to set up headquarters in the province.

?We have consulted with the local legislative council, and they support the idea,? he said adding that the regulation would be implemented in 2011. ?We are serious with this regulation. If the companies refuse to abide by the regulation, they will face some difficulties when asking for permits,? he added.

According to the governor, such a requirement is necessary to enable the local government to closely monitor their tax payment and corporate social responsibility (CSR) activities.

At present, the local government face difficulties in monitoring their tax payment and CSR programs because all the decision makers of the companies are stationed in their headquarters in Jakarta. (*)