Regencies accuse gov?t unfair in deciding oil, gas revenue split
Monday, May 27 2002 - 02:00 AM WIB
?We have been unfairly treated by central government, especially the ministry of finance, who, without consulting us, had issued a decree on estimate of revenue split for regencies and cities for 2002. In our opinion we are entitled to get more than stated in the decree,? said Drajat Hadiwijoyo, FKDPM?s managing director in a press conference.
Under the autonomy law, regional governments are entitled to get split from oil and gas produced in their respective areas. Regional governments get 15 percent from net oil revenue and 30 percent from net gas revenue. Regency which produces oil, gas will get 40 percent of the split (6 percent of net oil revenue and 12 percent of net gas revenue), another 40 percent will go to other non-producing regencies in the same province and the remaining 20 percent goes to provincial government.
?According to our calculation, the decree only gives oil producing regencies 1.1percent of the split, far lower that the 6 percent they are entitled to,? he said.
?Central government had shown arrogant and untransparent attitude. It never shows us the data that support its calculation. Thus far, government had not informed us oil and gas lifting data, lifting cost and selling price, and suddenly they just unilaterally decide the amount of the split that we have to receive.?
He said central government and the forum had earlier agreed that decision regarding revenue split would be discussed before any decision was made.
?FKDPM demands that the government revoke the decree and behave more transparent in their decision regarding the split. Government has to understand that the revenue from oil, gas split is very sensitive and vital to regional governments. Don?t play game on it. If the government does not heed to our call, we do not guarantee the safety of oil and gas companies operating in our areas,? he said. (alex)