North Kalimantan Governor Encourages Energy Justice, Oil And Gas Resulting Areas Must Be The Main Beneficiary

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YOGYAKARTA - Governor of North Kalimantan (Kaltara), Zainal Arifin Paliwang, called for the need for paradigm changes in the governance of the oil and gas sector in order to provide more tangible benefits for producing regions.

"Until now, there is still a gap between potential natural resources that are managed and the direct impact felt by local communities. Oil and gas producing areas are often spectators amid massive exploration in their own territory," said Zainal on the sidelines of the Upstream Oil and Gas Executive Meeting for the Kalimantan and Sulawesi Regions in Yogyakarta, Wednesday, October 29.

"It's time for oil and gas management not only to be oriented towards national lifting numbers. There must be equitable benefits, especially for people living around the production area," he continued.

He considered that the pattern of central and regional relations in oil and gas management needed to be reorganized so that collaboration between local governments, SKK Migas, and contractors was more concrete.

The producing area is not just an exploration location, but a development partner. Every drilling and industrial operation must have a double effect on the local economy to create jobs, increase people's income, and accelerate infrastructure development," said Zainal.

Governor Zainal revealed that in North Kalimantan the presence of the upstream oil and gas project encourages the growth of economic activity in several drilling sites. However, he considered the need for sustainable policies so that the effect would not only be temporary.

Kita ingin pembangunan yang berkelanjutan, bukan hanya jangka pendek selama proyek berjalan. Setelah produksi selesai, ekonomi lokal tetap harus hidup," ujarnya.

Zainal also proposed that the oil and gas-producing coordination forum be a routine mechanism to fight for common interests, including a more proportional distribution of results and regional participation in the planning of national energy projects.

"With inter-regional synergy and SKK Migas, we can produce energy policies that are fairer and in favor of the community," said Zainal.

He explained that the transformation of the oil and gas sector must be accompanied by strengthening the capacity of local workers so that the local community produces not only spectators, but main actors in the energy sector.

"Oil and gas investments must be a catalyst to produce superior local human resources. That's where the real added value is," he said.