PRODUCTION SHARING CONTRACT DAN OTONOMI DAERAH
Oleh : Dr. Nurwidiatmo, SH., MH., MM
The enactment of Regional Autonomy Ordinance answered the problem faced by the people of Riau Province, since the province which has a large number of natural resources such as gas and oil, and contributed a large share to the national development, had been for a long time suffering of poverty. The province used to be the poorest regional in the country.
The implementation of the ordinance showed the acceleration of regional development in the province, particularly the development of economy of the people through several programs. One of the program considered to be a big move is the management of Block CCP by the Regional Corporation, namely PT Bumi Siak Pusako (The Regional Owned Corporation). BP Migas as holder of authority on state mining and PT Bumi Siak Pusako accompanied by Pertamina Direktorat Hulu as business partner signed an agreement of Production Sharing Contract.
This Production Sharing Contract delegated by the Central Government to the province has accelerated significantly regional income particularly from natural resources sector, such as oil and gas.
However Riau Province has a big obstacle, the regional government lacks of skilled man power to run such business in oil and natural gas, and the public understanding of how to manage such a business is relatively low.