Indonesia's Oil Production Constantly Falls

Oil and mining research agency ReforMiner Institute states in its report that the reason behind constant fall of Indonesia's oil lifting within the past few years has been the application of Law No.22/2001 on Oil and Gas. 

The law stipulates that upstream management and monitoring is surrendered to Upstream Oil and Gas Regulator (BP Migas).  

Meanwhile, Law No.4/1960 and Law No.8/1971 on State Oil and Gas Mining Companies emphasizes the management and monitoring of national oil and gas sector by state-owned firm, which is Pertamina. 

ReforMiner shows that between 1972 and 2001, the government recorded 1.48 million barrels of oil per day. Meanwhile, between 2002 and 2010, the the oil production was only 1.0 million barrels. 

Average production increase of 1.16 percent per year was booked between 1971 and 2001. On the other hand, 2002-2010 witnessed decrease of average oil production by 2.86 percent. Yet, average oil reserves also went down from 7.1 biillion barrels (1971-2001) to 4.3 billion barrels between 2002 and 2010.

Jakarta to Improve Service to the Poor

Governor of DKI Jakarta, Fauzi Bowo, vowed he will perfect the city’s development work program in 2012 even when starting the new year without a deputy governor 

Fauzi said that the Jakarta administration's priority program has been set out in 2012’s Regional Mid-Term Development Plan (RPJMD).

Other than flood management, his team will also focus on health issues, especially on the poor. 

“In the health sector, there are many hospitals that do not meet the commitment to serve the poor. Therefore, we will persuade the hospitals’ management to improve their system,” said Fauzi Bowo in Jakarta. 

Moreover, he also deemed that the service system to poor families must be improved. 

“I have asked our Health Bureau to improve their performance.  There should not be any difficulties ahead,” he said. 

e-KTP

In relation with the central government residency program that is the making of electronic identity cards (e-KTP), Governor Fauzi explained that the Jakarta administration will extend the data collection process until April 2012. 

“I think that we will not be able to use this data for Jakarta’s  elections in 2012. But we should be able to use the data by 2014,” he  said. 

In 2012, the Jakarta administration will also focus on clean drinking water for Jakarta residents. 

“There has been a progress about our drinking water. The plan to set up a pipeline from Jatiluhur is being considered so that we can better provide clean water to Jakarta residents. Without it, we will not be  able to reduce using the underground water, which has caused serious  land subsidence,” he said.

Freeport-McMoRan Indonesia Workers End Strike

Workers at a giant Indonesian mine owned by U.S. company Freeport-McMoRan Copper & Gold Inc.  burnt rocks and shot arrows at pigs Sunday, marking the end of their three-month strike, a union official said.

“These rituals were part of a traditional ceremony to mark the end of our strike and that we are ready to start life anew,“ the workers' union spokesman Virgo Solossa told AFP.

Solossa said that roadblocks to the sprawling Grasberg mine, which holds the world's largest gold and second-largest copper reserves in restive Papua province, were also removed.

“We will resume work very soon. Tomorrow (Monday) we will mobilize 400 workers to the mine and see if they face any security issues such as shootings. We will then send more workers,“ he added.

Around 8,000 of Freeport's 23,000 workers have been on strike since Sept. 15, crippling production at the mine. Under an agreement reached with the company mid-December, they will receive a 37% pay hike over the next two years as well as benefits including housing allowances, education assistance and retirement savings plans.

“Most of the workers were satisfied with the deal,“ Solossa said.

The strike is one of a wave of industrial actions across Southeast Asia's largest economy, where the cost of living is rising and a burgeoning middle class is demanding a greater share of the nation's economic success.

The action at Grasberg triggered a spate of violence, with at least eight people killed in ambush attacks and a clash with police in the already restive province. The workers claimed to be Freeport's lowest-paid employees in the world, including those at mines in Africa and South America.