Youth group called on Pertamina, Exspan to let go Tarakan special harbor

The influential KNPI youth group in East Kalimantan called on the state-owned oil and gas company and its production sharing contractor Exspan to let go the special harbor which had been taken over by the Tarakan administration.

KNPI secretary Junus Abas Spi was quoted by Kaltim Post as saying that the harbor was taken over for the sake of the public interest. He added that the move had also been approved by the local House of Representatives.

Pertamina has filed a complaint to the policy over the decision of the Tarakan administration to take over the special harbor. The move by the Tarakan government was made following the implementation earlier this year of the country's new autonomy law, which provides greater power for regional government to manage their owns economic and social affairs.

The Tarakan administration has said that the taken over of the special harbor was made to help create new source of revenue for the administration.

The implementation of the autonomy law has created concern among investors particularly due to the aggressiveness of the local administration to secure financing sources.

Oil and gas, and mining companies also fear that the local government could unilaterally revise earlier contracts signed with the central government. (*)