24 October 2013
The Indonesian Forum for Budget Transparency (Fitra) opined that there would be no poverty at villages around oil and gas projects if the government’s programs were right on target, transparent and accountable.
Fitra Analysis and Advocacy coordinator Miftahul Huda said poverty around oil and gas mining is not a new problem even though the villages contain abundant natural resources and the revenue could contribute to village revenue through village fund allocation (ADD).
“If the management is poor, those villages even lose to villages with no natural resources,” he said.
Huda pointed out Klothok Village in Tuban Regency which has a large amount of ADD despite containing no oil and gas. “The ADD in 2013 was Rp1.6 billion,” he said.
The ADD was managed well by the village due to transparency and accountability in planning and execution.
Huda went on to criticize the government and oil and gas operators that seem to ignore local economic potentials, such as traditional markets that were not prioritized for economic empowerment through Corporate Social Responsibility (CSR).