West Papua Provincial Government Proposes Repositioning Oil and Gas Revenue-Sharing Funds as Regional Own-Source Revenue for Producing Areas
Manokwari, West Papua (ANTARA) - The West Papua Provincial Government has proposed repositioning oil and gas revenue-sharing funds (DBH migas) as part of regional own-source revenue (PAD) to bolster fiscal independence for oil and gas producing regions.
West Papua Vice Governor Mohammad Lakotani, in a written statement received in Manokwari on Friday, stated that producing regions have made significant contributions to national revenues, yet the benefits they receive remain suboptimal.
“Oil and gas producing regions should not merely be recipients of fund transfers but must become primary actors in managing and conducting business in the oil and gas sector within their own territories,” he said during the first National Working Meeting (Rakernas) of the Association of Oil and Gas Producing Regions and Renewable Energy (ADPMET) 2026 in Jambi on Thursday (7/5/2026).
According to him, the frequent delays in the distribution mechanism of DBH migas impact regional fiscal stability, necessitating strengthened regulations to allow more independent management by local governments.
Discrepancies between oil and gas lifting data and the amount of transfer funds received affect the fiscal capacity of producing regions to finance energy sector development, basic infrastructure, and improvements in public service quality.
“We urge that oil and gas producing regions receive a proportional share of DBH to support development programmes in the regions,” Lakotani stated.
In addition to advocating for the repositioning of DBH migas as PAD, Lakotani also requested that the central government provide greater opportunities for regions to directly engage in energy sector management through regional-owned enterprises (BUMD).
The Rakernas I ADPMET 2026 was themed “Strengthening Fiscal and Integration of Old Wells, Community Wells, Idle Fields, and Modular Refinery Development”.
The forum discussed several strategic issues, including the implementation of Minister of Energy and Mineral Resources Regulation Number 14 of 2025, optimisation of the 10 percent participating interest (PI), transparency in lifting data and cost recovery, as well as opportunities for building mini refineries in oil and gas producing regions.
The Rakernas also recommended synergy between central and regional governments in advocating for gas allocation through the utilisation of mini LNG and compressed natural gas (CNG) technologies to expand energy distribution in producing regions.
The results of Rakernas I ADPMET will subsequently be formulated into official recommendations to the central government, the Ministry of Energy and Mineral Resources, SKK Migas, and other relevant parties as input for national oil and gas sector policy formulation.