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Fresh deal divides Aceh oil and gas management

Source
Jakarta Post - June 24, 2006

M. Taufiqurrahman, Jakarta – The House of Representatives and the government have agreed on joint management of oil and gas in Nanggroe Aceh Darussalam by the provincial administration and central government, reneging on a promise to let the Acehnese control their natural resources.

The agreement – part of the soon-to-be-endorsed bill on Aceh governance – was reached by lawmakers and representatives of the government in a closed-door session early Friday.

Present were key members of the House special committee on the Aceh governance bill, Home Minister M. Ma'ruf, Communication and Information Minister Sofyan A. Djalil, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Finance Minister Sri Mulyani Indrawati and State Secretary Yusril Ihza Mahendra.

"The central government argued that as oil and gas are two commodities that contribute a large amount of revenue to the government coffers, it is therefore important for the government to control it, and we agreed with that," the chairman of the House special committee, Ferry Mursyidan Baldan, said.

He added the legal foundation for the decision was Article 33 of the Amended Constitution, which states that the central government controls important natural resources for the benefit of all citizens.

The latest draft of the bill, which was made available to The Jakarta Post, carries a provision stipulating that the central and provincial government could set up an implementing body similar to the Upstream Oil and Gas Executive Agency (BP Migas) to manage gas and oil reserves found in the province.

The decision for joint management backtracks from a House pledge that the Acehnese administration could manage its resources. The Helsinki peace accord signed last August between the Free Aceh Movement and the Indonesian government stipulates that 70 percent of the current and future revenues from Aceh's natural resources, including oil and gas, will go to the local government.

Another condition that will likely disappoint Acehnese seeking greater autonomy concerns the appointment of the provincial secretary. It states the appointment will be made by the governor based on consultation with the Home Minister. "In the consultation, the central government can reject a candidate it deems unfit for the position," the draft bill says.

Ferry said discussions between the government and the House would continue, especially concerning the special autonomy fund given to the Acehnese. "The House proposes a formula of 2 percent for 20 years, while the government insists on 2 percent for a 15-year period."

The two sides also still disagree on the title of the bill. Contacted separately, GAM said the latest decision was an attempt to go back on the content of the Helsinki peace accord. "The management of oil and gas is beyond the six domains exclusive to the central government, so why not let it go?" GAM spokesman Tengku Kamaruzzaman told the Post.

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