The Oil and Gas Draft Law Requires Ensure Central-Regional Proportionality
By : Hariyanto And Aldo Bella Putra | Tuesday, January 30 2018 - 18:00 IWST
![Sektor Migas (Foto Ist)](https://eagle.industry.co.id/uploads/berita/detail/1397.jpg)
Sektor Migas (Foto Ist)
INDUSTRY.co.id - Jakarta - The draft petroleum and natural gas legislation that is being drafted must be able to ensure the creation of fair proportionality between the center and the region regarding the sharing of profits from the commodity.
"To be considered in the preparation later, the principle of making the Act should be fair and proportional," said Deputy Chairman of the Legislation Board, Totok Daryanto in a release on Monday (29/1/2018)
According to him, so far the calculation of oil and gas revenue sharing is calculated at the center so that some regions do not feel that they have adequate information about it.
Under Law No. 33/2004 on Fiscal Balance between Central Government and Local Government, local governments receive 15.5 percent of total state revenues from the commercialization of petroleum after deducting other tax and levy components.
Of the 15.5 percent, as much as 0.5 percent is allocated to increase the basic education budget in the area concerned while the remainder is divided by 3 percent for provinces, 6 percent for producing districts / cities, and 6 percent for other districts in the province.
While for natural gas, the amount of revenue-sharing funds obtained by the region reached 30.5 percent with the amount is then re-divided as much as 0.5 percent allocated to increase the basic education budget in the area concerned, as with oil.
The remaining 30 percent is divided by 6 percent for provinces, 12 percent for producing districts, and 12 percent for other districts.
Members of the Legislative Body of the House of Representatives, Bambang Riyanto, argued that realizing justice in the distribution of oil and gas results is very important.
Bambang argues that the calculation of allocations contained in Law N0 33/2004 still does not reflect justice for oil and gas production areas.
For that, he said, it is proposed that when discussing the revision of Oil and Gas Law, it is expected to involve oil and gas producing and processing areas.
Earlier, Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar mentioned five Conventional Oil and Gas Working Areas (WK) have been in demand by investors, both local and international contractors.
In a press conference at Jakarta's ESDM Ministry, Friday (29/12), Arcandra explained five of the ten conventional oil and gas blocks that have been sold are Andaman I, Andaman II, Merak Lampung, Pekawai and West Yamdena.
Read Also
The 7th Abu Dhabi Dialogue in Dubai: Commitment to Enhance Migrant…
Pertamina Hulu Rokan expounds on wetland innovations at COP28
Pertamina reaffirms its commitment to net zero emissions by 2060
President Jokowi Inaugurates Tangguh Train 3 Project in Teluk Bintuni…
MMA Offshore Automates Onboarding With Boomi
Today's Industry
![Flag of the United Nations Organization.](https://eagle.industry.co.id/uploads/berita/small/5783.jpg)
Kamis, 15 Agustus 2024 - 14:26 WIB
Modena Officially Becomes a Member of the UN Global Compact
Commited to transforming towards sustainable business practices, Modena the global home appliance established over 60 years ago in Italy, officially became a member of the UN Globe Compact (UNGC)…
![Totolink outlet. (Photo: Public Relation of Totolink)](https://eagle.industry.co.id/uploads/berita/small/5782.jpg)
Kamis, 11 Juli 2024 - 22:08 WIB
Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia
Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.
![The President Commissioner of Bersama Digital Data Centres (BDDC), Setyanto Hantoro (fourth right) and The President Director of BDDC, Angelo Syailendra (third right) during the BDDC JST1 Inauguration Ceremony in Jakarta on Wednesday (10/07/2024).](https://eagle.industry.co.id/uploads/berita/small/5781.jpg)
Kamis, 11 Juli 2024 - 19:03 WIB
BDDC Inaugurates JST1 TIER IV Data Centre in Jakarta to Strengthen Digital Infrastructure
Bersama Digital Data Centres (BDDC), an in-town data centre provider with interconnectivity and integrated digital systems, inaugurated its 5 MW Tier IV data centre facility, JST1 (Jakarta Selatan…
![The Board of Directors of PTT Global Chemical (GC) pose for a group photo after receiving the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin. (Photo: GC Public Relations)](https://eagle.industry.co.id/uploads/berita/small/5780.jpg)
Kamis, 27 Juni 2024 - 15:30 WIB
Global Chemical Achieves Prestigious SNI Certification for InnoPlus Polyethylene Resin
PTT Global Chemical (GC) is proud to announce its successful attainment of the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin.
![Financial Literacy](https://eagle.industry.co.id/uploads/berita/small/5779.png)
Rabu, 26 Juni 2024 - 22:47 WIB
The Importance of Financial Literacy
Financial literacy refers to the ability to understand and use various financial skills effectively, including personal financial management, budgeting, and investing.
News Comment