Two neighboring regencies quarrel over oil, gas revenue

Two neighboring regencies in East Kalimantan province, Kutai Kertanegara and Kutai Timur, have engaged in a polemic over autonomy funds allocation from the central government, the local Kaltim Post daily reported.

The Kutai Kertanegara administration has demanded that the Rp 475.75 billion (US$1=Rp 9,400) autonomy funds allocated for Kutai Timur administration to be reduced on grounds that the latter did not have oil and gas wells.

Kutai Kertanegara administration said that the oil and gas wells were located in their area and that 70 percent of the autonomy funds received by the Kutai Timur administration should be transferred to Kutai Kertanegara.

The government launched the regional autonomy policy giving provinces and regencies greater power in managing their social and economic affairs. The central government allocates the regional autonomy fund to help finance the greater administrative power of the regions.

But Kutai Timur Regent Awang Faroek strongly rejected the demands of Kutai Kertanegara. Awang said that Kutai Timur also had oil and gas resources.

"Who says we don't have oil wells," he was quoted by the local Kaltim Post as saying.

"I have valid data from the ministry of mineral resources and energy. So I'm not talking nonsense," he added.

Awang said that he actually did not like to quarrel with the neighboring Kutai Kertanegara administration, but the strong statements sent by the latter via the mass media had reached beyond his tolerance.

"For me, if Kutai Kertanegara is richer, it is no problem. On the contrary, I will be very happy because Kutai Kertanegara is our neighboring regency. So why should we quarrel," Awang said. (*)