S. Kalimantan ready for wide autonomy

South Kalimantan, one of resource-rich provinces in the country, is ready to adopt a wider autonomy and has enough local financial sources to support the province's development, a local official ha said.

Nahson Taway, the vice governor of the province, said in Palangkaraya on Wednesday that the province has sufficient natural resources to finance its budget and build its economy.

He said as many as 89 timber companies operated in the province at present, controlling forest concession areas of more than 9.4 million hectares. "The province still have another 4.6 million hectares of productive forest areas, which remain untapped," he added.

Nahson said that the province is also rich in mineral resources and most of them have not been developed, with gold deposits reaching over 28,600 tons.

In response to demands for decentralization, the government issued last April Law No.22/1999 on Regional Administration and Law No. 25/1999 on Intergovernmental Fiscal Balance.

Both pieces of legislation give regions greater autonomy in managing their own affairs, including a greater share of the revenues they generate. Under the intergovernmental fiscal balance law, provinces will get 15 percent of the government's oil revenue, 30 percent of gas receipts and 80 percent of mining royalties. (*)