Kotabaru, S Kalimantan (AntaranewsKalsel) - The Kotabaru Legislative Council (DPRD) received a working visit of the DPRD of Majene District, West Sulawesi, related to the draft regulation on the formation of a regional company (perusda).
"The working visit of the Majene councilors is in the framework of the establishment of company related to profit sharing through participation interest (PI)," said Deputy Chairman of DPRD Kotabaru H Mukhni AF here on Friday.
In terms of revenue sharing on oil and gas management in Lari-larian Island, SKK Migas (oil and gas regulation) mandates that each region establish a regional company, said Mukhni who was accompanied by Vice Regent H Burhanuddin when welcoming Majene councilors group.
The establishment of a regional company must have a local regulation (Perda) as a legal umbrella because it involves regional revenue.
Kotabaru, he added, already has a local company based in Perda No.10, so that in general is ready if the profit sharing is realized.
Previously known, for the mediation of the central government led by the vice president, the profit sharing agreed through participation interest on the management of Sebuku block is evenly divided between South Kalimantan and West Sulawesi.
But in its development, the local government including the DPRD Kotabaru regretted that the expected profit-sharing funds have not been realized until now although oil and gas exploration and exploitation has been ongoing since 2015.
