PGN seeks guarantees for Sumatra project<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post\/Pekanbaru<\/p>\n
State gas distributor Perusahaan Gas Negara (PGN) is seeking a
\nguarantee from provincial and local governments to support its
\nkey pipeline project linking the Duri gas field in Riau to North
\nSumatra.<\/p>\n
In a meeting here with Riau Governor Rusli Zainal, PGN
\npresident director W.M.P. Simanjuntak said the guarantee was
\nneeded for investors to avoid unnecessary snags over land
\nacquisitions and permits.<\/p>\n
"Of course (the guarantee) is important to assure investors in
\nthis key project that such issues will not hamper its
\nrealization. But, we are also keen to assure local authorities
\nthat the project will benefit the provinces," Simanjuntak said on
\nWednesday after the meeting, which was part of series of forums
\nheld between the company and regional governments.<\/p>\n
Locals could get jobs in the new regional companies in charge
\nof gas distribution that would be established, while some of the
\ngas would be earmarked for local SMEs, especially palm oil
\nbusinesses that were flourishing in the area, Simanjuntak said.<\/p>\n
In response, Governor Rusli said he would coordinate with the
\nregencies involved in the project, and underlined that his office
\nwould try to identify possible problems the project may encounter
\nin the future so as to find solutions.<\/p>\n
"We cannot say anything yet, because we are still working out
\nwhich regencies will be affected by the construction, but of
\ncourse we will try to find best solutions," Rusli said.<\/p>\n
Since the implementation of regional autonomy in 2001, many
\ninvestors have complained about the resulting confusion caused by
\nnumerous regulations, often contradictory to those issued by
\ncentral government, which often cause expensive delays and boost
\nproduction costs. Many regulations have been criticized as
\nexcuses for bribe-taking by government officials.<\/p>\n
PGN is planning to build some 493 kilometers of pipeline from
\nthe Duri field in Riau to North Sumatra, a project worth some US$
\n300 million. The project is due for completion in July 2007.<\/p>\n
The pipeline will pass through several regencies in four
\nprovinces -- North and South Sumatra, Riau and Jambi.<\/p>\n
"What we can say is that we are committed to helping investors
\nas it will help us improve the province's economy, but we would
\nalso like to see the project benefit local people," Rusli said.<\/p>\n
The Riau administration planned to build two gas-fired power
\nplants in the area, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pgn-seeks-guarantees-for-sumatra-project-1447893297",
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"sponsor": "Okusi Associates",
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