Committee IV of The House of Regional Representatives (DPD) in cooperation with the Riau Provincial Government (Pemrov) and Riau University (Unri) held a National Workshop Seminar (Semiloknas) entitled “Issues and Implementation of Profit Sharing of Oil and Gas” in Pekanbaru, Tuesday (9/3 ). The event was attended by leaders and members of Committee IV of the DPD, governors/regents/mayor’s regional oil and gas producer, university rectors in Riau, as well as the Consultation Forum of Regional Producer of Oil and Gas. Vice Chairwoman of DPD Gusti Kanjeng Ratu (GKR) Hemas gives keynote speech. According to her, in the era of regional autonomy, the success of development is not only determined by the central government, but also the role of local governments and synergy of all the nation potential. DPD held semiloknas by inviting the participation of local governments and universities in the region concerned. She added that since decentralization, the transfer of funds from the center to the regions increased quite sharply from year to year with the withdrawal mechanism that is getting better. Considering improvements in the quality of local public service requires an additional, among them to reduce poverty and unemployment, it is also necessary to transfer an additional amount of funds from central to regional oil and gas producer. “In its implementation, many regions complaining the withdrawal of funds transfer which is often late, so that it is disturbing development in the region. Areas of natural resources producer such as oil and gas, forestry, and fisheries often have “pay less” profit sharing funds of natural resources from government.” During this time, Hemas asserted, the Government seeks to accelerate the distribution of these profit sharing funds. The delay distribution was more significantly influenced by various factors in the mechanism of its calculation such as the availability of data oil lifting. This situation got attention from the Government and DPD. In addition, the regional producer of natural resources of oil and gas also feel not transparent in profit sharing funds concerning the calculation mechanism component of deduction in the calculation of the area section. Therefore, it needed clarity the calculation mechanism the component of tax and other levies as a component of a deduction in the calculation of the area section. Based on these issues, the Committee IV of DPD held semiloknas which is attended by various stakeholders of profit sharing funds of oil and gas. Committee IV of DPD involving Budget Office as a think tank of DPD, especially which concerning the budget and financial balance of central and regional. Minister of Finance (Menkeu) Sri Mulyani Indrawati as an informant representing the government, explaining about policy of transfer funds, management of profit sharing funds for the oil and gas, distribution of profit sharing funds for the oil and gas, and implementation of profit sharing funds for oil and gas in the Regional Budget of Revenue and Expenditure (ABPD). “Transfer Funds of APBN (Budget of Revenue and Expenditure) to the APBD aims to reduce disparities between regions as part of NKRI (Unitary State of the Republic of Indonesia).” She said the transfer policy from center to regions aimed to reduce the fiscal gap between center and regions and between regions, support the national development priority which become regional affairs, improve the quality of public services, increase local revenues, and expand regional infrastructure development. “So, local government determines the speed of reaching development goals,” she said. Governor of Riau M Rusli Zainal explained the problems of profit sharing funds for the oil and gas which facing by Riau, i.e. the distribution time which is not well organized or delayed 4-9 months, so it is not utilized to fund the activity program. The proof is there is Rp 1.6 trillion of profit sharing funds for the oil and gas which yet distributed as a realization of the distribution of profit sharing funds for the oil and gas. In addition, the calculation of Riau from the rising price of crude oil in 2008 is not in accordance with the highest price (Capping) Ministry of Finance. The calculation of profit sharing funds for oil and gas which is yet transparent marked with producer area which did not get comparative data because of Cooperation Contract Contractors (KKKS) did not provide data on production or the lifting of oil and gas; producer area did not get a deduction component data such as cost recovery, other charges such as the Domestic Market Obligation (DMO) petroleum fees, over / under lifting, and the upstream activities fee of oil and gas; and oil and gas taxes not only from KKKS, Upstream Oil and Gas Supervisory Agency (BP Migas), but also the Ministry of Finance. Therefore, Rusli reminded that it need to be reviewed the mechanism calculation of profit sharing funds of oil and gas so that its distribution on time also can be utilized effectively and efficient; recalculate the area of oil and gas producer in 2008 after rising oil prices; recalculate the producer area due to the first semester errors in 2009; and deduction component in calculation of profit sharing funds of oil and gas which are more transparent and consistent. He also hoped that the DPD provides support to Riau as one of the producer area of oil and gas to obtain additional transfer fund from APBN to the APBD, review the formula of profit sharing funds for the oil and gas, push the Government giving reward to Riau as industrial growth poles, support Riau in getting tax division of agricultural export tariffs. Rusli explained, Riau development strategy is to reduce poverty, tackle gaps, and provide infrastructure. So far, Riau facing problems, i.e. limited human resources, population growth is relatively high so that increasing unemployment and poverty, lack of infrastructure such as roads, bridges, water, also electricity. Hemas and Rusli hope, semiloknas explore various issues of profit sharing funds of oil and gas at once its solution to be input for the improvement implementation of profit sharing funds of oil and gas, include completing the calculation mechanism and its withdrawal.

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