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.