Gov't ponders greater profits for Aceh, Irian

BANDUNG (JP): The government is mulling giving an even greater share of revenue from natural resources to Irian Jaya and Aceh to placate growing separatist sentiments in the two provinces.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said no exact figure had been agreed to yet "but if I'm not mistaken" the provinces had proposed "over 50 percent be returned to them."

The proposal is much higher than those fixed in the law on fiscal balance between central government and the regions.

Law No. 25/1999 stipulates provinces would receive 15 percent of oil royalties, 30 percent of gas royalties and 80 percent of mineral royalties from natural resources taken from that province.

Speaking during a public lecture on environmentally friendly energy and mineral management at Padjadjaran University on Friday, Purnomo admitted that the consideration of a higher share for the two provinces was prompted by social, political and security reasons.

The two provinces have seen rising separatist activity in the past two years. Aceh, in particular, has become a battleground with casualties mounting daily as a result of armed contact between security forces and rebels.

The higher shares, if agreed to, would be included in a special bill on the two provinces currently being debated at the House of Representatives.

When asked, Purnomo could not speculate on the possible sentiment of other provinces if such a proposal was accepted.

He admitted that neither the government nor the House had assessed possible jealousy arising from other provinces in their deliberation.

Purnomo expressed hope that it will not set a bad precedent and aggravate the likelihood of further disintegration.

However he stressed that since the application of regional autonomy on Jan. 1 there had also been a misperception of the ownership of natural resources.

He pointed out that the essence of Law No. 25 was revenue sharing, not the transfer of ownership of natural resources to the provinces.

It is clearly stated in Article 33 of the 1945 Constitution that the land, sea and all natural resources is owned by the state and used for public benefit, Purnomo remarked.

"The government still needs to manage it so it can implement cross subsidies from the rich provinces to the poor ones." (25/emf)