BANDA ACEH – The ongoing exploration of oil and gas in Aceh provides great hope for the province to improve the welfare of its people. However, if not prepared, past bad experiences may be repeated.
The Chairman of the Aceh People’s Advocacy Foundation (YARA), Safaruddin, stated in Banda Aceh on Tuesday (4/6/2024) that the Aceh Provincial Government should prepare human resources, advocate regulations with the central government, and prepare infrastructure to encourage derivative investments.
Currently, oil and gas exploration in Aceh is underway and spread out in several locations, such as Andaman I, Andaman II, and Bireuen Block. Even the Andaman Block is claimed to have large reserves of oil and gas.
Safaruddin said that oil and gas will be the backbone of Aceh’s economy in the future. This sector can be relied upon to replace special autonomy funds which will end in 2028.
Based on regulations, sharing of oil and gas revenues between the Aceh Provincial Government and the central government has been regulated in Government Regulation Number 23 of 2015 concerning Joint Management of Oil and Natural Resources in Aceh.
Regarding oil and gas revenue in onshore and up to 12 nautical miles production areas, Aceh receives 70 percent, while the central government receives 30 percent. As for production areas above 12 nautical miles, Aceh is entitled to 30 percent and the central government to 70 percent.
“If it is not properly guarded, Aceh will lose potential profits in the oil and gas business,” said Safaruddin.
Oil and gas will become the mainstay of Aceh’s future economy. This sector can become a replacement support for special autonomy funds that will end in 2028.
According to Safaruddin, the bad experience during the heyday of Exxonmobil and PT Arun’s oil and gas industry must not be repeated. In the past, Aceh did not receive a share of the profits from all the oil and gas production in Aceh.
“Previously the results were unclear, but after peace Aceh has a greater chance,” he said.
In the webinar “Exploration of Oil and Gas and its Benefits for the Aceh Community” on Monday (3/6/2024) night, the Head of Energy and Mineral Resources Agency (ESDM) of Aceh, Mahdinur, stated that oil and gas are natural resources bestowed upon Aceh by God and therefore must be managed for the benefit of the Aceh community.
“We have to prepare ourselves, don’t become spectators,” said Mahdinur.
Mahdinur stated that, from a regulatory perspective, Aceh’s position is becoming stronger as the distribution of oil and gas revenues has been clearly defined. On the other hand, job opportunities are also open.
“There are employment opportunities, both direct and indirect, that the people of Aceh must be able to take,” said Mahdinur.
Chairman of the Indonesian Renewable Energy Society (METI) Surya Darma stated that Indonesia was once the world’s largest oil and gas producer during the ExxonMobil and PT Arun era.
However, national oil and gas production has now significantly decreased. The discovery of several oil and gas blocks in Aceh provides new hope for Indonesia and the region.
”How Aceh prepares itself to take advantage of the oil and gas industry. “Don’t let Aceh get nothing,” said Surya.
Surya stated that despite the existing regulations that regulate the amount of oil and gas revenue sharing, the Aceh Provincial Government needs to conduct lobbying efforts and maintain communication with relevant parties to ensure that the implementation is in compliance with the rules.
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