Indonesian Political, Business & Finance News

Papua to share revenue with West Irian Jaya

| Source: JP

Papua to share revenue with West Irian Jaya

The Jakarta Post, Jakarta

The government has announced a plan to issue a regulation in lieu
of law (perpu) to revise the special autonomy law for Papua,
under which the resource-rich island will have to share its
economic revenues between Papua and the new West Irian Jaya
province.

Another government regulation would also be issued to
legitimize the legal status of the controversial West Irian Jaya
province.

President Susilo Bambang Yudhoyono, who just arrived back from
an eight-day overseas trip, confirmed the plan here on Friday.

"We will issue a government regulation to regulate the special
autonomy status for West Irian Jaya and Papua," Susilo told
journalists upon his arrival in Jakarta on Friday evening.

"The government regulation is aimed at ensuring that West
Irian Jaya will be able to manage its economy independently," he
added.

The President said that after the issuance of the regulation,
the government would hold direct gubernatorial elections in the
two provinces, though he did not specify any dates.

A government source revealed that the two government
regulations would be issued in January, saying the first
regulation would be to settle the legal status of the West Irian
Jaya province, while the second would be to regulate revenue
sharing for the two provinces.

The resource-rich region of Papua is home to the Tangguh gas
field, which holds some 18.3 trillion cubic feet of LNG, as well
as the PT Freeport Indonesia copper and gold mine. The Tangguh
project is located in West Irian Jaya, and Freeport is located in
Timika, Papua.

"Papua is considered as one economic unit. All natural
resources on the island will not be divided in accordance with
its division into two provinces," the source said.

Earlier on Friday, Vice President Jusuf Kalla held a meeting
with West Irian Jaya figures to discuss special autonomy issues
and a plan for a direct gubernatorial election in the new
province.

Those in attendance included Coordinating Minister for
Political, Legal and Security Affairs Widodo Adi Sucipto,
Minister of Home Affairs M. Ma'ruf, acting West Irian Jaya
legislative council speaker Jimmy Demianus Idjie, acting West
Irian Jaya Governor Timbul, and West Irian Jaya military
commander Maj. Gen. George Toisutta.

Jimmy said the meeting agreed to postpone the gubernatorial
election in West Irian Jaya from the scheduled Nov. 28 until
after the government completely settled the new province's legal
status and regulated distribution of natural resources and
budgets for the two provinces.

Leaders of Papua province had reached a similar agreement
during a separate meeting with Kalla at his vice presidential
office on Thursday.

Under the agreement, West Irian Jaya's controversial creation
would be referred back to Law No. 21/2001 on Papua's special
autonomy and to the government regulation concerning the
formation of the Papuan People's Assembly (MRP).

The law stipulates that the division of Papua into one or more
provinces must obtain the approval of the Papua legislature,
governor and MRP.

Kalla said the agreement was aimed at "strengthening the legal
basis of West Irian Jaya in the context of the special autonomy".

Meanwhile, human rights activist Asmara Nababan, from the
Papuan Forum, urged the government on Friday to continue
promoting a peaceful dialog to resolve problems in Papua.

"The people of Papua need to be free from fear and have
political appreciation from the central government. Security
approaches (to the problems) will spread fear among them, thus
eliminating their political participation," said Asmara, who is
also former secretary-general of the National Commission on Human
Rights (Komnas HAM).

In response, Susilo said his government would not settle
Papuan problems with military force.

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