Provinces will be involved in determining oil and gas shares
Monday, October 8 2001 - 02:33 AM WIB
Secretary of the energy ministry Djoko Darmono said in Jakarta on Saturday that provinces as the producers of the oil and gas were deserved to be involved in calculating the amount of the oil and gas revenues, which will go to their coffers, and how much that will go to the central government.
?We will listen to aspirations of provinces and we hope they will be involved beginning next year,? he told reporters following a meeting with a delegation from East Kalimantan provincial administration.
Djoko admitted that determining the amount of oil and gas revenues to provinces was often confusing because the larger parts of the oil and gad production areas are located in regencies.
According to the existing regulation, regency receives 6 percent of oil revenues coming from oil production activities in its area and the provincial administration receives the other 3 percent. For gas, the regency will receive 12 percent and the province the other 6 percent
In mining activities, a province will receive 80 percent of the annual contribution payment from mining companies, of which 64 percent will go to regency, where the mining is located, and the other 16 percent to provincial administration.
About royalty, the province will receive 80 percent, of which 16 percent to provincial administration, 32 percent to producing regency and the other 32 percent to under regencies in the province. (*)