FKDPM delays lawsuit against finance ministry
FKDPM delays lawsuit against finance ministry
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The Association of Oil and Gas Producing Regencies (FKDPM) has postponed plans to sue the Ministry of Finance over oil and gas earnings for several days to better prepare itself for the legal battle.
"We're serious with our step. We're going to take legal action next Monday or Tuesday," FKDPM senior official Drajat Hadiwijoyo told The Jakarta Post on Wednesday.
The association on Friday gave the ministry until Monday to revoke Decree No. 214/KMK.06/2002. Otherwise, the association would file a lawsuit against the ministry at the State Administrative Court.
The decree has sparked controversy because the association said the amount of oil and gas earnings to be delivered by the central government to producing regencies under the decree was too low. Under Intergovernmental Fiscal Balance Law No. 25/1999, the central government has to share 15 percent of its oil earnings and 30 percent of its gas earnings to the producing areas.
The association has not only threatened a lawsuit against the ministry but also the blockading of all oil and gas operations across the country to pressure the ministry to revoke the decree. However, the blockades, which were initially planned for last Saturday, have yet to happen.
Drajat said the association had not yet dropped the blockade plan but did not specify when they would happen.
According to Drajat, aside from preparing a lawsuit at the State Administrative Court, the association was also preparing a petition for the Supreme Court to carry out a judicial review of the ministerial decree.
Minister of Finance Boediono has warned members of the association against blockading oil and gas operations in their respective areas, saying it would hurt the economy and investment climate.
Boediono asked the producing regencies to sit down and talk with him to find a solution.
FKDPM has welcomed the invitation of Boediono for talks, which was delivered via the media, and has asked the protesting regions to be patient.
However, Drajat said the association had not yet received any official invitation from Boediono to the dialog.
"It's disappointing. So far, we have been patient. But they seem to underestimate us," he said.