East Java Governor Khofifah Indar Parawansa ensured that six districts in the local province began the process of participating in managing oil and gas (oil and gas) through a 10-percent mutual agreement in the management of particicipating interest (PI).
"Six regencies are divided into two working areas or WK, after each regional head signed a 10-percent agreement with PI at the Grahadi State Building in Surabaya on January 3, 2023," Khofifah said in a written statement quoted by Antara, Thursday, January 5.
Three of them are included in the Tuban WK, namely Tuban, Bojonegoro and Gresik regencies. The other three regencies are members of the Brantas WK, namely Sidoarjo, Mojokerto and Pasuruan regencies.
Governor Khofifah explained that the participation of six districts in oil and gas management in his area is regulated in the Regulation of the Minister of Energy and Mineral Resources Number 37 of 2016 concerning Provisions for Offering PI 10 Percent in the Oil and Gas Working Area.
"The allocation of this oil and gas must be jointly managed by oil and gas, provincial and district producing regions through the agreed Regional Owned Enterprises or BUMDs. We still have to carry out various processes to meet the requirements," he said.
When all requirements are met, Governor Khofifah advised that the management of oil and gas products or natural resources be able to leverage the economy in the PI management area of 10 percent.
The former Minister of Social Affairs is optimistic that through good management it will have the potential to add wider welfare to the community, as well as improve development in their respective regions.
For this reason, Governor Khofifah asked the Department of Energy and Mineral Resources (ESDM) together with the PI management area of 10 percent to immediately coordinate properly.
"Because this is a new thing that is expected to benefit the community. Synergy, collaboration and commitment are important things to be maximized," he said.
Governor Khofifah hopes that there will be other working areas after Tuban and Brantas who can get a 10 percent PI like today.
"Meanwhile, for the Tuban and Brantas WK, we are targeting the final 2023," he said.
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