Govt to amend regional autonomy policy: Purnomo<\/p>\n
JAKARTA (JP): Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro hinted on Friday that the government might have to
\nmake some changes to the new regional autonomy policy amid
\n\"misuse\" by some regional governments.<\/p>\n
Purnomo said that many leading foreign investors, particularly
\nin the mining and oil and gas sector, had complained about the
\npoor implementation of the regional autonomy policy.<\/p>\n
\"If this (problem) continues, foreign investment will not come
\nto Indonesia,\" he told reporters.<\/p>\n
The government launched Law No. 22\/1999 on regional autonomy
\nearly this year giving regional government, including regencies
\nand mayoralties, greater power in managing their social and
\neconomic affairs.<\/p>\n
Purnomo, however, did not say clearly whether the government
\nwould revise the law or introduce a new government ruling.<\/p>\n
Purnomo said that some local administrations had been too
\naggressive in collecting revenue by imposing new taxes, which not
\nonly burdened foreign investors, but also contravened the
\ncontract signed with central government in Jakarta.<\/p>\n
He said his ministry had received many complaints about this
\nproblem from foreign investors, citing gold mining company PT
\nNewmont Minahasa Raya and coal mining company PT Kaltim Prima
\nCoal.<\/p>\n
The country's oil and mining industry had also been badly
\naffected by the poor implementation of regional autonomy, experts
\nsaid.<\/p>\n
President Megawati Soekarnoputri, who was the country's vice
\npresident when the autonomy policy was launched, has also voiced
\nher criticism several times over the policy, urging immediate
\nmeasures to evade more abuses from regencies.<\/p>\n
Purnomo said that the Ministry of Home Affairs would be
\nresponsible for making the changes. He did not provide details.<\/p>\n
\"There will be pluses and minuses, but we must move forward to
\npass this transition period,\" he said.<\/p>\n
However, he said, the government would still give regencies
\nthe authority to issue operation licenses to mining and oil
\ncompanies.<\/p>\n
Purnomo stressed that the government remained committed to the
\nimplementation of regional autonomy to help accelerate local
\neconomic development.<\/p>\n
\"We totally support regional autonomy because we want
\nprovinces and regencies to be well developed,\" he said.<\/p>\n
He added that the regional autonomy issue would be one of his
\nfive priorities under the new Cabinet of President Megawati
\nSoekarnoputri.<\/p>\n
The other four programs were to meet the government target of
\noil and gas exports, to complete a review of existing laws
\nrelated to energy and mineral resources, to restructure state-
\nowned enterprises under the ministry such as the state-owned oil
\nand gas company Pertamina and electricity company (PLN) and to
\nestablish clean and good governance at the ministry.<\/p>\n
Elsewhere, Purnomo expressed his optimism in meeting the
\ngovernment oil and gas export target of Rp 100 trillion (US$10,4
\nbillion) this year amid fears of continuing declining
\ninternational oil prices.<\/p>\n
He said his optimism was attributed to the strong result
\nbetween January and July, which reached 60 percent of the full-
\nyear target.<\/p>\n
\"I'm upbeat that we can meet or even surpass the target,\"
\nPurnomo said, adding that demand for oil would remain high this
\nsummer as well as winter.<\/p>\n
He said the government would also support the Organization of
\nPetroleum Exporting Countries' (OPEC) plan to cut oil production
\nby 1 million barrels per day starting Sept.1 to prop up prices.<\/p>\n
Crude oil price future in London were $25.98 per barrel on
\nFriday, compared to $25.57 the previous day.<\/p>\n
The government has set the assumption in the State Budget that
\nthe average price of crude oil in 2001 will be $24 per
\nbarrel.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-amend-regional-autonomy-policy-purnomo-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}