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🇮🇩 Indonesia /Energy & Infrastructure

State Assets in the Rokan Block Need Protection, Economist Says Central-Local Cooperation Is Key

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Economist Hamid Paddu called for stronger coordination between Indonesia’s central and regional authorities to protect state assets in the Rokan Block’s operating area.
  • He said cooperation could help address land and labor disputes without creating additional bureaucracy or operating costs.
  • Paddu backed a larger role for Riau’s oil and gas operational support task force, which helps mediate disputes and protect upstream oil and gas state assets.

Protecting state assets in the Rokan Block will require central and regional authorities to work together, economist Professor Hamid Paddu said. He argued that cooperation could speed up responses to local problems affecting upstream oil and gas operations.

Those problems include land disputes and employment issues. Hamid said the central government, regional administrations and law enforcement agencies needed to coordinate within their respective powers. The arrangement, he stressed, should not create extra bureaucracy or costs.

Local activities certainly require coordination, because land issues, employment issues and so on are connected to local conditions. But it must be coordination that does not create additional bureaucracy or costs. If so, it will help resolve regional problems disrupting operations in the Rokan Block more quickly.

· Hamid PadduThe economist described how central and regional authorities should cooperate on local issues affecting Rokan Block operations.

“Local activities certainly require coordination, because land issues, employment issues and so on are connected to local conditions. But it must be coordination that does not create additional bureaucracy or costs. If so, it will help resolve regional problems disrupting operations in the Rokan Block more quickly,” Hamid said.

Because it will become a pattern that creates unnecessary costs.

· Hamid PadduHe warned that poorly designed coordination could increase operational expenses.

He also warned that inefficient coordination could impose unnecessary expenses on operations. He said the role of the Riau Provincial Oil and Gas Operational Support Task Force could be strengthened as a forum for cooperation among agencies. The task force handles land-related matters and protects upstream oil and gas state property, including by facilitating mediation in cases involving damage, trespassing or unauthorized control of state assets.

Hamid said central-regional cooperation was consistent with decentralization. Although the Rokan Block is a national strategic activity, regional governments and local law enforcement agencies still have authority that should be exercised according to their duties. His recommendations followed a discussion held by Pertamina Hulu Rokan, SKK Migas and the Riau police on Aug. 6, 2026, which brought together law enforcement, government officials, regulators, academics and other stakeholders to coordinate on land issues linked to upstream oil and gas assets.

So, coordination for sound policymaking is perfectly legitimate. But prove that the coordination is professional and genuinely stays within each institution’s authority, so it does not create costs.

· Hamid PadduHamid stressed that cooperation must respect institutional responsibilities and avoid additional expenses.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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