Although traditional oil mining has been practiced for hundreds of years, since 1894, during the Dutch colonial era, the welfare of the workers has not improved. Their lives seem to remain impoverished. The economic situation of these oil coolies is evident in the condition of their homes and their unchanging lifestyle.
Their income is significantly different from three years ago, when oil was sold for Rp 3,000 per lliter. At that oil price, oil miners could earn Rp 1 million a week. Today, they earn between Rp 300,000 and Rp 500,000 a week. Furthermore, the shift work system requires that their earnings be shared among the group members. Each group works once a week in shifts. The income they earn is used to cover their living expenses for two weeks.
The miners' income is modest. However, they are unable to do much or change jobs. This is because the agricultural lands surrounding the mining area are also barren, preventing optimal yields. In recent years, production from hundreds of oil wells is predicted to have declined drastically. At the end of April, the miners' association stated that there are 200 wells in the area, operated by approximately 2,500 miners in shifts.
The crude oil produced by the local community is sold to the Unit Cooperative in Sumber Pangan Village, an institution established by Pertamina and the Bojonegoro Regency Government. Some of the oil produced is also used as fuel by local miners. One well, with an average depth of 300 meters, can produce between 1 and 2 tons per day. Recently, oil production has continued to decline, in line with the decline in crude oil reserves in the area. While last year, there were 200 producing wells, now only half that number remains. The crude oil supplied to Pertamina has also decreased. Currently, production is good, with miners still able to supply 20-25 vessels per day to Pertamina.
Now, only five fleets, or 25,000 liters of oil, have been delivered, a significantly reduced output, making mining this year's worst. This situation is compounded by reduced attention from the Bojonegoro and Jakarta regional governments, including the association that had previously coordinated the inactive miners. With the nominal lifting and transport cost of only Rp 1,880 per liter, most miners are reluctant to deliver to Pertamina at such an inhumanely low price. The reason is that if crude oil is sold to refiners, oil from traditional miners is still valued at Rp 2,300 per liter.
This price disparity has made miners reluctant to deposit their traditional crude oil mining products with Pertamina through the Village Unit Cooperative. The Bojonegoro Regency Government, along with Pertamina EP Cepu (PEPC), is committed to making the Wonocolo oil mine the first petroleum geoheritage in Indonesia. On April 27, the area was officially designated a traditional crude oil tourism village.
However, supporting facilities are not yet fully ready. The two access roads leading to the site have not been fully repaired, although some improvements have begun. Supporting roads within the tourist site are still cobbled MacAdam roads. The Regency Government has prepared a rest house complete with dioramas.
Later, off-road and downhill routes will be established. Several pilot wells have been prepared, but work on them is still incomplete. Miners are also facing issues regarding the designation of the oil and gas tourism village. They worry that once the tourist site is successful, mining activities in the surrounding area will gradually be disallowed. The miners hope that the oil and gas tourism village will improve their economy and prosperity. Moreover, more than 100 oil wells have been shut down, impacting their income.
Media Indonesia, Page-23, Wednesday, Nop 2, 2016
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