The government will immediately issue a presidential regulation on extractive industries in an effort to make the management of oil profit-sharing funds more transparent.

Finance Minister Sri Mulyani Indrawati made the statement at a national gathering on oil and gas profit-sharing funds in the draft 2011 state budget here on Tuesday.

The substance of the presidential regulation was now being discussed by an inter-ministerial team, consisting of the Ministry of Finance, Ministry of Energy and Mineral Resources, Ministry of Home Affairs under the coordination of Coordinating Ministry for Economic Affairs.

With the presidential regulation, oil/gas producing regions would get benefit because so far the regions had never been involved and always had difficulty in getting valid information about the “lifting” of oil and gas, she said.

Contractor companies as the sub-contractors of the oil and gas companies must also be transparent in conveying the amount of the costs recovery issued to the public to avoid potential fraud, she said.

For instance the data presented by the oil companies in Riau, Chevron Pacific Indonesia, which has representative offices in the country, the data must be equal to that provided to the United States, she added.

Source: Antara