The threat of an oil, gas blockade

The threat of an oil, gas blockade

The news that 48 regencies are threatening to block oil and
gas production in their areas is a serious threat.

Such a threat has been made by the Consultation Forum for Oil
and Gas Producing Regions in response to the decree issued by the
finance ministry, which they judge to have broken the rules. In
accordance with the finance ministry's Decree No. 214 dated May
7, 2002, the oil-and-gas producing regions will only receive
between 1 and 2 percent of the oil and gas production in their
areas.

According to Law No. 22/2001 on oil, the regions' share of oil
and gas production is about 15 percent and 30 percent
respectively. They have threatened to stop oil and gas production
in the respective areas. This plan has received support from the
labor union of the state oil and gas company (Pertamina).

The technical department has the authority to determine the
percentage. The Minister of Finance merely issues the decree.

Is that so? The matter should be made clear. What is the exact
percentage actually? The stipulation on sharing has been
regulated in the law.

Clarification on this matter is important. It is related not
only to the legal stipulation and regulation but also to legal
procedures and authority. If it is true, why has the decision not
been made in line with the law?

Today is an era of autonomy. Autonomy means that power,
authority and opportunity lies in a region.

The central government should show greater wisdom and
sincerity in carrying out regional autonomy. However, it would be
better if the regions, through various forums, cooperate when
there is a problem and not hurriedly launch into issuing threats.

-- Kompas, Jakarta