Riau legislator calls for amendment in Oil and Gas Law
Friday, September 15 2000 - 04:00 AM WIB
The Law No 8 on Oil and Gas should be amended to ensure the smooth implementation of the newly issued Law on the Intergovernmental Financial Balance beginning next year. Otherwise, the provincial administrations will get nothing from the bigger revenue allocation stipulated in the new legislation, according to J. Nadeak, the chairman of the Commission III of the Legislative Council of the Riau Province.
"It is high time now for the government to revise the Oil and Gas Law to ensure that the local administration will be able to fully benefit from the new law," he was quoted as saying by Tempo Interaktif online news service.
The new law, which will fully implemented beginning next year, will allow the provincial government to receive 30 percent of the revenues raised from the development of natural gas, and 15 percent from oil revenues.
Under the new revenue sharing ratio, Riau, the country's largest oil producer, will receive next year at least Rp 4 trillion (about US$475 million) from its oil resource. (*)