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Aceh wants fair share of oil, gas revenue

Source
Jakarta Post - April 28, 2007

Nani Afrida, Banda Aceh – Aceh has accused the central government of breaking the law and betraying its promise to the Acehnese people to share more of the province's oil and gas revenues, as required by the 2006 Aceh Governance Law.

Aceh Legislative Council member Muklish Muktar has urged the central government to be consistent with the law, which was designed to provide Aceh with greater autonomy.

Under the law, Aceh is entitled to a share of revenue worth 15 percent for oil and 30 percent for gas. Aceh administration should then be provided an additional 55 percent of funds for oil and 40 percent for gas, as per the 2006 Governance Law.

According to a 2007 Finance Ministry regulation, however, Aceh shares amount to Rp 750 billion (US$81.5 million), when the province should receive at least Rp 2.2 trillion.

"We're surprised to learn that we're getting only Rp 750 billion. We thought the Finance Ministry was aware Aceh should receive a further 55 percent for oil, in addition to the 15 percent allocated to all provinces," said Aceh Deputy Governor Muhammad Nazar late Thursday.

Another council member, Burhanuddin, said he hoped President Susilo Bambang Yudhoyono was paying attention to his ministers to ensure they were consistently obeying the law, especially regarding Aceh.

He said that consistency and commitment from the central government and its ministers was crucial to a peaceful situation in Aceh.

The tsunami-hit province has been devastated by almost three decades of conflict, which ended only after the government signed a peace deal with the Free Aceh Movement rebels in Helsinki in 2005.

Aceh's provincial budget this year is set at Rp 3.9 trillion but this was drawn with the assumption the 2006 law would be adhered to. "Aceh's budget relies on oil and gas revenue sharing," Nazar said. "The Finance Ministry regulation will badly effect Aceh's 2007 budget."

Aceh provincial administration has written to the ministry requesting they reconsider their decision and provide the additional revenue for Aceh.

Nazar said the Acehnese have high hopes for the province's future development, following the signing of the 2005 peace deal. "We don't expect more but it has been regulated by the law," he said.

Law expert Mawardi Ismail said on Friday there has been a misunderstanding over the Aceh Governance Law. The misunderstanding, he said, was mostly found in article 258 on management of oil and gas revenue sharing, which should not start until the 2008 budget term.

He said the oil and gas fund and its additional revenue should be managed by the municipal and regency administrations before being handed over to the provincial administration in 2008.

"Although the province will start managing the fund in 2008, it doesn't mean it will get the 55 percent (and 40 percent) addition (this year)," Mawardi said.

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