Gov't ponders greater profits for Aceh, Irian

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)