Riau rejects implementation of new oil and gas law

The provincial administration of Riau has rejected the implementation of new oil and gas and described the law as against the aspiration of the people, Bisnis Indonesia reported on Monday.

?I respect to what have been done by the members of the province?s legislative council and the whole people on rejecting the implementation of the new oil and gas law,? Riau governor Saleh Djasit said in Pekanbaru on Saturday.

He said that the central government should consider the rejection of several oil rich provinces before fully implementing the new law, which was passed by members of the House of Representatives last month. ?If not, the impact will be severe, because many provincial administrations had no longer trust in the central government,? he said.

The governor said that the new oil and gas law is also against the autonomy law. According to the autonomy law, provincial administrations have the rights to receive 30 percent from oil and gas production in their respective provinces. But in the new law, oil and gas production from offshore production activities all go to the central government. (*)