Pertamina allocates Rp 43.7 billion for Aceh

State oil and gas company Pertamina has agreed to allocate part of its revenue from oil and gas operations in Aceh to empower the local economy, This year, the company through its operation unit in Rantau, East Aceh will contribute Rp 43.7 billion (1$=Rp 9,000) to the province.

Members of the local legislative council said that Pertamina finally agreed to contribute part of its revenues from oil and gas operation in the troubled province after the councilors made a number of approaches both through the executives of the state owned oil and gas company in Aceh and Jakarta.

"Thanks? God, we finally succeed in convincing Pertamina that such an assistance is needed to help empower the economy of the local people," Jamaluddin Ahmad, a member of the Reform faction at the council, was quoted as saying by Waspada.

He said that Pertamina's contribution was made in line with the newly introduced intergovernmental financial balance law, which among others regulates the distribution of income from natural resources in the country. Under the law, about 35 percent of the income from gas operation, and 15 percent from oil operation should go to the province.

Jamaluddin said that the new law would be effective beginning next year but Pertamina agreed to pay the contribution ahead of the schedule in a bid to help the troubled province to cope with its problem.

About Rp 12 billion of the total funds would go to North Aceh, Rp 10 billion to East Aceh, Rp 3.6 billion to Banda Aceh, Rp 3.1 billion Aceh Besar, Rp 3.1 billion to Bireun, Rp 2.2 billion to Pidie, Rp 1.8 billion to Central Aceh, Rp 1.2 billion to South Aceh, RP 996 million to Southeast Aceh and Rp 735 million to Simeuleu. (*)