FKDPM to sue finance ministry

FKDPM to sue finance ministry

Moch. N. Kurniawan, The Jakarta Post, Jakarta

The association of oil and gas producing regencies (FKDPM) said on Friday it would file a suit against the Ministry of Finance unless the latter immediately revoked its decree on the oil and gas revenue split between the regions and the central government.

In a letter sent to the Speaker of the House of Representatives, a copy of which was obtained by The Jakarta Post, FKDPM said that Minister of Finance Boediono had until Monday to revoke decree No. 214/KMK.06/2002 or the association would go to the State Administrative Court.

The copy of the May 31 letter was also sent to Boediono.

FKDPM has demanded the central government revise the existing revenue split formula because the producing regions receive only a small portion in the split.

The association threatened to blockade oil and gas operations in their areas earlier this week starting Saturday if Boediono did not revoke the decree, but the latter warned them against such a move as it would scare investors away, which would in turn be disastrous to their economies.

Boediono asked the producing regencies to sit at the negotiation table with him.

FKDPM senior official Dradjat Hadiwijoyo said that the association welcomed the invitation of Boediono for dialog, delivered via the press, and had asked the protesting regions to be patient.

But he said that until Friday there were no signs that such a meeting would take place.

Dradjat said that the oil and gas producing regions were seeking a role in determining the revenue split formula.