Mining Resulting Areas But Still Poor, SKK Migas Expresss Administrative Causes

Illustration. (Photo: Doc. Antara/PGN)

JAKARTA - Indonesia is one of the largest oil and gas mining (oil and gas) producing countries in the world. But unfortunately, there are still mining-producing areas that are actually included in the poorest regional group in the country. Such as in Aceh, Riau, East Kalimantan and Papua.

In response, the Acting Head of the Program and Communication Division, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Mohammad Kemal revealed that various mining companies upstream have given their obligations to the local government.

Furthermore, Kemal explained that the obligation in question was in the form of taxes paid by entrepreneurs as reciprocal from the exploration carried out.

"This oil and gas industry is in accordance with government policies. Starting from paying regional taxes, electricity for lighting and others," he said during a discussion with SKK Migas at the Holiday Inn Pasteur Hotel, Bandung City, West Java, quoted Tuesday, October 4.

Not only paying their obligations in the form of taxes, said Kemal, the upstream oil and gas company also provides a corporate social responsibility program (CSR) to the local community. This includes fostering Micro, Small and Medium Enterprises (MSMEs).

"In Bojonegoro, at that time there was a very good project, the value could be trillions because it involved workers around," he said.

Therefore, according to Kemal, the local government needs to be asked about the poverty rate in oil and gas mining producing areas. Given that a number of entrepreneur's obligations have been fulfilled for the benefit of the surrounding community.

"Perhaps this (source of the problem) is in the regions. From us, many components have been given to the regions, including participating interest which only exists in the regions," he explained.

For information, the Participating interest (PI) is the participation of business entities including Regional Owned Enterprises (BUMD) and a permanent form of business in the management of upstream oil and gas.

The scheme should be able to make the local government a shareholder because PI 10 percent can help the region to prosper the community. The goal is to be able to participate in managing the company in order to generate reciprocity for regional finances.

"We really hope that they (Pemda) will get this PI so that their reciprocity to their area will be stronger," he said.

Similarly, SKK Migas Expert Ngatijan said that any investment entering the area should have a domino effect on the local community.

"Every 1 US dollar that is invested the benefits can be six times higher," said Ngatijan.

According to Ngatijan, the management of returns from mining-producing areas can actually be optimized if managed properly. This is reflected in several areas that manage mining products into developing and prospering the community. For example, like Batam.

"Many cities have been built from oil and gas products such as Batam, Cirebon and others. But there are still many that are not prosperous either," he said.