The Bojonegoro Regency Government, East Java, plans to clarify by asking the Minister of Finance for information regarding the decline in revenue sharing funds (DBH) for oil and gas from a target of Rp 1.4 trillion to Rp 910 billion.
"We will clarify the reduction in oil and gas DBH revenues directly to the Minister of Finance," said Head of the Regional Revenue Service of the Bojonegoro Regency Government, Herry Sudjarwo.
He is pessimistic that this clarification step will succeed after seeing the condition of the State Budget (APBN) which has not improved.
"If you look at the state budget conditions this year, it is unlikely that our regions will be able to obtain additional Oil and gas Production Sharing Funds,".
He mentioned that the Oil and Gas Production Sharing Fund received by the region this year from the Rp. 910 billion target was only around Rp. 600 billion, as of October. Looking at the budget year with only two months remaining, it is unlikely that there will be additional oil and gas DBH transfers from the Government.
"We do not know how to regulate the budget allocation in the Regional Revenue and Expenditure Budget (APBD) which was forced to revise several times due to the decline in oil and gas DBH revenues,".
He explained that the region last year received oil and gas revenue sharing funds amounting to Rp. 812.7 billion, but in the calculation it turns out that there is still an excess of Rp. 59 billion which is calculated this year.
Thus the advantage is that the revenue for oil and gas revenue sharing last year was calculated this year so that the target for oil and gas revenue sharing is getting smaller. "The target for oil and gas revenue sharing funds will be reduced, plus there will be cuts in last year's oil and gas revenue sharing fund channel,".
He added that the target of obtaining land and building tax (PBB) for oil and gas land which was targeted at Rp. 326 billion was also not realized because the acquisition was only Rp. 151 billion. The PBB obtained from oil and gas land, from the PBB land from an old oil well field in Kedewan District, Malo, Cepu Block oil field in Gayam District and Sukowati field, in Bojonegoro City District and Kapas District.
"Yes, the reality is that PBB of land for oil and gas is not on target," the reason for not achieving the acquisition of PBB for land for oil and gas.
Regent of Bojonegoro Suyoto, previously stated that the oil and gas DBH revenue can no longer be used as a guideline in the preparation of the APBD because it often experiences fluctuations which are influenced by world oil prices and production.
Investor Daily, Page-9, Wednesday, Oct 19, 2016
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