Berikut ini saya lampirkan artikel dari PETROMIN (Asia's Exploration & Production 
Business Magazine) Edisi January-February 2004 yang memuat hasil "wawancara" saya 
menanggapi masalah "ketakutan" investor pada otonomi daerah. Mudah-mudahan bermanfaat 
untuk dijadikan rujukan bagi rekan-rekan yang ingin proaktif (kampanye) investasi 
migas di Indonesia.
Untuk melihat aslinya anda bisa klik di http://www.safan.com

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No More Fears of Regional Autonomy

 

(PetroMin Magazine January/February 2004, page 13)

 

The hard times are now over for Indonesia's local governments, or so it would seem. 
Thanks to the decentralization system; even the smallest and frontier regions could be 
as affluent as Jakarta very soon. For many years, local governments had to live under 
the central government's fiefdom and had to make suffice themselves with money 
transferred from central government's account. Now, local governments can use money 
they collect on their own. Unfortunately, at the same time, the excitement of a 
regional autonomy system grows together with investors' -especially foreign ones- fear 
on the issue itself. As reported, there are many new taxes and levies in order to 
fulfill the target of getting higher local income, which at the same time is killing 
the foreign investor's appetite to make any investments in Indonesia.

            On the face of it, things should be different now for the oil and gas 
business. "There's nothing to be feared about regional autonomy for those who want to 
do investment in the oil and gas business," says Andang Bachtiar, serving on the Board 
of Experts on FKDPM (Forum Komunikasi Daerah Penghasil Migas), a communication forum 
of oil and gas producing regencies. Of about 13 subjects authorized to the local 
governments, the oil and gas business is not on the list. Oil and gas contracts are 
still under the central government's authorization; including tax and regulation.

            However, though Bachtiar assures that regional autonomy is not that scary, 
he agrees that it could affect the investment climate. The burgeoning new taxes and 
levies, according to Bachtiar, is because they -the local governments- are still 
seized by euphoria. But this euphoria is soon to be over.

            With the slowly but surely rising awareness of the oil and gas business, 
local governments are starting to wise up on how to do business with the investors.

            "They (the local governments) are starting to understand that not all 
wells flow oil and gas, that there are steps in searching and finding of petroleum 
along the risk of failure," says Bachtiar, who also serves as president of Indonesian 
Association of Geologists, explaining the narrow-mindedness among the local kingpins 
toward the E&P business. "I can see their horizon on the E&P business now slowly 
opening. This has made them wiser in coping with the regional autonomy issue," says 
Bachtiar, who regularly assists regents to the Ministry of Finance in calculating oil 
and gas lifting. He furthermore predicts that the learning process about the petroleum 
business will show good results by 2005.

            "The local government's 15% earning of 85% -Indonesia's share of a PSC- is 
very much higher when compared to previous earnings and is one of the breakthroughs 
brought about by the decentralization system. The more investors come to the area, the 
higher share they will receive. Therefore, instead of making the area like a battle 
xone between the government and the investor, the local leaders should start creating 
a comfort zone for investors. They would soon realize that too many additional taxes 
and levies would do nothing but fleece investors.

            By strongly supporting regional autonomy system, Bachtiar says, many good 
things would come of it, for instance it would make people in the area be more 
responsible towards companies working in their areas, since they know the industries 
bring them benefits. As regencies compete, in providing suitable infrastructure and 
capable officers, this would reveal the frontier areas like Papua and make the eastern 
provinces as attractive investment as the western parts of the country.

            In the future, Bachtiar expects that the growth of the oil and gas 
business will draw geoscientists to work in such areas, therefore it will open greater 
vocational opportunities for them. Speaking especially on oil and gas investment, he 
reiterates that oil and gas investors should have nothing to worry about, since the 
law and regulations on oil and gas E&P are strictly controlled by the central 
government; all oil and gas contract agreements and profit sharing deals are done with 
central government. It is clearly stated that no local government is allowed to make 
any regulations related to the oil and gas business. Almost all significant 
regulations and tax regimes on the oil and gas business are both made and controlled 
by the central government.

            There are ten recognized topics in the oil and gas business giving 
authorization to the local government: for example, approval for oil and gas 
concession usage for non E&P activities; recommendation on forest usage for E&P 
activities, e.g.: land clearing - filling for site construction; licensing on 
explosive warehouse and, recommendation for refinery construction.

 

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