Govt formulates guidelines for revenue distribution<\/p>\n
JAKARTA (JP): The government's special team is formulating
\nguidelines on the distribution of state revenues from natural
\nresources among regencies, provinces and the central government.<\/p>\n
Minister of Mines and Energy Susilo Bambang Yudhoyono said
\nhere on Tuesday that the guidelines would serve as an integral
\npart of the intergovernmental fiscal balance law, which would be
\nenforced next year.<\/p>\n
\"The guidelines are needed to provide legal references on how
\nprovincial administrations will benefit from their natural
\nresources,\" he said in a hearing with the House of
\nRepresentatives Commission VIII for mines and energy.<\/p>\n
The intergovernmental fiscal balance law is one of two
\nlegislations which will be introduced next year as part of an
\neffort to give more autonomy to provincial administrations to
\nmanage their own financial resources and political affairs. The
\nother one is the law on regional government.<\/p>\n
According to the intergovernmental fiscal balance law, the
\nregional governments are entitled to receive 15 percent of the
\nregional revenue from oil, while the remaining 85 percent of it
\nhas to go to the central government.<\/p>\n
Three percent of the 15 percent should go to the provincial
\ngovernment, six percent for the regency where the natural
\nresources are located, and the remaining six percent for all the
\nother regencies in the province, said Susilo quoting the law.<\/p>\n
For gas revenues, according to Susilo, the distribution was 30
\npercent of the proceeds to go to regional governments and the
\nremaining 70 percent to the central government.<\/p>\n
Unlike the oil and gas revenue distribution, most of revenues
\nfrom the mining sector including mineral, precious metal and coal
\nshould go the regional governments.<\/p>\n
\"The regional government gets 80 percent of the revenue while
\nthe remaining 20 percent goes to the central government,\" he
\nsaid.<\/p>\n
Susilo said that some of the authority in the mines and energy
\nsector, according to the above autonomy laws, would be
\ntransferred to the regional governments.<\/p>\n
He said however there were obstacles which needed to be solved
\nquickly regarding the transferring of authority from the central
\nto the regional governments.<\/p>\n
There were a number of cases where the regency and the
\nprovincial governments were still in conflict on the
\nimplementation of the autonomy laws, said Susilo.<\/p>\n
Some regional governments had gone ahead with creating their
\nown new regulations on the mines and energy sector, to precede
\nthe central government completing the mines and energy guidelines
\nfor the regional government regulations, Susilo added.<\/p>\n
\"The central government guidelines are needed to resolve the
\ndiffering perceptions among the regions across Indonesia about
\nhow to manage mining and energy industry,\" Susilo said.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-formulates-guidelines-for-revenue-distribution-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}