Indonesia grants Aceh autonomy, ExxonMobil resumes operations

by The Associated Press

Seeking to end a long separatist war in a region rich in oil and gas, Indonesia’s parliament passed a bill July 19 granting sweeping autonomy to the Aceh province.

The legislation, which takes effect in 2002, is not expected to have an immediate impact on the conflict, which has claimed more than 900 lives this year.

Under the bill, the predominantly Muslim region will have the right to impose Islamic sharia law and establish a Muslim court system.

The bill also gives the local government a 70 percent share of royalties from the sale of natural resources, including oil and natural gas.

Separately, American oil giant Exxon Mobil Corp. announced July 19 it has resumed limited operations in Aceh after a four-month suspension due to fighting, despite the apparent failure of talks between rebels and the government to give new impetus to the moribund peace process.

During the past 10 years, more than 6,000 people have been killed in fighting between the Free Aceh Movement and government forces.

Julia Tumenkol, a spokeswoman for Texas-based ExxonMobil, said in Jakarta that the company resumed extraction of natural gas in Aceh after suspending operations in March due to the growing bloodshed.

The suspension halted exports of liquefied natural gas worth $100 million a month, depriving Indonesia’s cash-strapped government of much-needed revenue. The government had repeatedly called on the company to resume operations.

Tumenkol said ExxonMobil had begun a phased resumption of gas production at one if its four gas fields. She said production volumes were likely to increase in the next few days if the pumping is not disturbed by fighting.