South Sumatra oil, gas firms criticized over community development program

Oil and gas firms operating in South Sumatra province have not done enough with their community development program, according to deputy governor Thobroni HS.

Thobroni was quoted by the local Sriwijaya Post as saying Friday that many oil and gas firms misunderstood the concept of community development (CD) program.

He said that many firms thought that providing assistance to local cooperatives or small-sized businesses were part of CD. He said that this is not true, pointing out that CD program was supposed to aim at improving or restoring local environment affected by the companies? operation.

Speaking in a workshop on CD in Palembang, Thobroni also criticized the existing ruling on CD which did not specifically stipulate the amount of money to be allocated by companies on CD.

There was a suggestion in the workshop that the oil and gas companies should allocate at least 10 U.S. cents per barrel of oil they produce to community development program. (*)