Regencies in S Sumatera are disputing Sungai Gerong refinery plant

Three regencies in South Sumatera province are disputing the control of a oil refinery plant in Sungaigerong, near the provincial capital of Palembang, due to the difference in the distribution of land and building (property) tax receipts from the operation of the refinery, Sriwijaya Pos reported.

The head of the Ogan Komering Ilir (OKI) regent Rozi Dahlan said that all regencies had the rights to control the refinery because they had the same contribution to support the refinery operation.

"The distribution of the property tax should be fair because all regencies have made a similar contribution in the supply of crude oil for the refinery," he said. "To be fair, the distribution of tax receipts should be equal," he added.

In order to ensure an equal distribution of the tax receipts, the control of the refinery should be returned to the provincial administration, Rozi said.

Under the existing regulation, Musibanyuasin regency receives Rp 170 billion from the property tax from the oil refinery, Muaraenim Rp 50 billion andOKI only Rp 29 billion.

Oki regent expressed his anger after a top official from Musibanyuasin has foiled the regency's attempt to host a water surfing game which will be held as part of the events during the national sports game to be held in the province in 2004.

Musibanyuasin, the largest regency in the province, has expressed its willingness to host the surfing game, taking it over from OKI. (*)