National extractive resources, particularly the oil and gas and mineral and coal mining sectors, are still the primary sector contributing to state revenue (APBN), where 25 to 30% of APBN revenues are contributed by this sector. However, on the other hand, local governments and the surrounding community as “wealth owners” do not know much about and are directly involved in how this sector is managed and how the revenue sharing mechanism (DBH) is determined for the district from the central government.
East Java Province is one of the regions with quite large natural resource (SDA) potential. With various advantages in terms of geology and natural structure, East Java has a significant content of oil and gas (oil and gas) and other mineral sources such as limestone, cement, and gold, which are also quite large.
East Java has been producing oil since the late 18th century, especially from the Cepu area, Bojonegoro. Until now, these areas are still oil and gas producing areas. Besides the early 1970s, oil production has also been increased from fields off the north coast of East Java, and by the end of the 1980s, gas production increased from fields off the east coast of East Java.