Riau should give Jakarta more pressure in CPP case

Riau province should give more pressure to Jakarta if it wants to get a controlling stake in the province's oil and gas resources, a member of the House of Representatives (DPR) Irwanto Prayitno has said.

Speaking at a seminar in the province's capital of Pekanbaru, the legislator said that the province's demand to get a controlling stake in the Coastal Plain Pekanbaru (CPP) oil block was ignored by the central government due to the lack of a pressure made by the province to win its claim.

"A pressure is needed as long as it is carried out in a good manner, not through anarchy," he was quoted as saying by Riau Pos. But he did not say whether a series of street rallies carried out by Riau students in Jakarta recently was not part of a pressure made by Riau in meeting its demand.

The Riau province had demanded to get a 70 percent stake in the ownership of the CPP oil block. The demand received wide supports from Riau students, who had had carried out a series of street rallies in Jakarta in support of the local government. A series of negotiations and top-level meetings with President and Vice President had also been made by the Riau authority. But their demand was still turned down.

Minister Purnomo earlier said that the Riau province had required the government to have at least 70 percent in the CPP oil block but the request was rejected to avoid a bad precedent in the country's oil industry.

The Riau is instead given only 10 percent stake in the oil block while other 90 percent go to the central government. However, the Riau province would be given a number of incentives in the operation of the oil field. The incentives include a priority of hiring locals in the operation of the oil block, and to allow the province to sell their oil dividend to their own buyers. (*)