Editing Bojonegoro Regency (section)

==Economy==

=== Agriculture ===
[[File:COLLECTIE TROPENMUSEUM Tabak uit bevolkingsaanplant op droogrekken Java Sumatra Handels Mij te Bodjonegoro TMnr 10011719.jpg|thumb|left|Drying tobacco leaves in Bojonegoro during [[Dutch East Indies|colonial period]].]]
Agriculture has been the regency's main industry. The Solo River provides a fertile farming area for rice. The main crops are rice and tobacco, as well as maize. In 1984, the area of maize harvested reached 67,000 hectares with yields ranging from 1 to 1.28 t/ha.<ref>{{cite book |last=Djauhari |first=Aman |author2=Adimesra Djulin |author3=Irlan Soejono |title=Maize Production in Java |publisher=Intl Specialized Book Service Inc |year=1988 |url=http://www.uncapsa.org/Publication/cg13.pdf |isbn=979-8059-14-X |page=11 |access-date=8 February 2007 |archive-url=https://web.archive.org/web/20070928093131/http://www.uncapsa.org/Publication/cg13.pdf |archive-date=28 September 2007 |url-status=dead }}</ref> A typical farmer grows rice in the rainy season, when water is abundant, and tobacco or maize in the dry season. There is a high risk in agriculture because of seasonal uncertainty. Rice growing will fail if the rainy season ends before its time, and tobacco growing will fail if rain comes early.

Bojonegoro is one of the biggest producers of tobacco in Indonesia, with a total value of [[Indonesian rupiah|Rp]]1.2 trillion (around US$100 million) and employing 57 percent of the workforce.<ref>{{cite web |title=Kabupaten Bojonegoro |publisher=Departement of Health |url=http://bankdata.depkes.go.id/kompas/Kabupaten%20Bojonegoro.pdf |url-status=dead |archive-url=https://web.archive.org/web/20070929124658/http://bankdata.depkes.go.id/kompas/Kabupaten%20Bojonegoro.pdf |archive-date=29 September 2007 }}</ref> The majority of tobacco planted is Virginia varieties. However, Bojonegoro tobacco suffers from a high proportion of [[chlorine]],<ref>{{cite web |title=Cl content problem of Virginia tobacco grown in Vertisols in Bojonegoro |publisher=Department of Agriculture, Indonesia |url=http://perkebunan.litbang.deptan.go.id/index.php?option=com_content&task=view&id=32&Itemid=7 |url-status=dead |archive-url=https://web.archive.org/web/20070721120358/http://perkebunan.litbang.deptan.go.id/index.php?option=com_content&task=view&id=32&Itemid=7 |archive-date=21 July 2007 }}</ref> and uncertain rainfall. Most tobacco is used to make [[clove]] cigarettes (''[[kretek]]'').

=== Forestry ===
[[File:COLLECTIE TROPENMUSEUM Oude djati-bomen Bodjonegoro Midden Java TMnr 10012989.jpg|thumb|left|An old ''jati'' ([[teak|teak wood]]) tree in Bojonegoro during [[Dutch East Indies|colonial period]], 1900–1940.]]
Bojonegoro is also known for its hardwood tree ([[teak]]) production. There is an annual ''Bojonegoro Teak Fair'' in late January to early February where local craftsmen display their products. Teak is mainly used in shipbuilding and furniture making. A teak cutter is called {{Transliteration|jv|blandong}} in the local Javanese dialect.

Teak forestry faces a major problem in [[illegal logging]], as with other parts of Indonesia. In 2001 alone, the area looted covered 3,000 ha; looters stole an estimated 27,000 trees. The regional police reported impounding 550 large trucks of stolen timber, approximately 2,000 m<sup>3</sup>, with an estimated local market value of US$1,000,000. Several riots have happened when tension arose from teak claims and when police tried to enforce the law on local thieves.

These riots were the worst during the period of turmoil between President [[Abdurrahman Wahid]] and [[Megawati Sukarnoputri]] in 2001. However, after that situation calmed, enforcement became better, but illegal logging is still a significant problem, with police and bureaucratic officials often accused of cooperating with timber thieves.

=== Petroleum and gas ===
[[File:Pumpjacks in Kedewan.jpg|400px|thumb|[[Pumpjack]]s in Kedewan district]]

The recent discovery of oil and [[Natural gas|gas]] fields in the area is providing new economic opportunities.

The oil/gas fields locations include Banyu Urip, Alas Dara, Alas Tua West, Alas Tua East, Jambaran, Cendana (ExxonMobil 45%, Pertamina 45%, local companies 10% - under Joint Operating Agreement), and Sukowati (Operated under Joint Operating Body - Petrochina Pertamina East Java).

The Banyu Urip oil and gas field has proven [[oil reserves]] of over {{convert|250|Moilbbl|m3}}, with peak production of about {{convert|165000|oilbbl|m3}} per day, accounting for 20 percent of the present national crude oil production.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10108 |date=14 March 2006 |title=Cepu Block development to create 3-8 billion dollars in multiplier effect |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The main exploration started officially when a cooperative contract was signed on September 17, 2005, with Mobil Cepu Ltd., a subsidiary of [[ExxonMobil]] as the main operator. A joint operation agreement between state oil company [[Pertamina]] was signed in March 2006. Pertamina and ExxonMobil concluded a 30-year production-sharing contract in which each company would share 45 percent interest in the block. The remaining 10 percent would go to the local governments.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10067 |date=13 March 2006 |title=Pertamina, Exxon to jointly run oil block |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> Foreign companies, mainly from [[People's Republic of China|China]], have started to invest in Bojonegoro in various projects related to the planned exploration and exploitation of the Cepu Block oil fields with a total value of US$8 million.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10652 |date=28 March 2006 |title=Seven foreign companies ready invest in Bojonegoro |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> According to the former minister and ambassador to the United States, [[Dorodjatun Kuntjoro-Jakti]], Tuban and Bojonegoro would resemble [[Texas]], because of its gas and oil resources.<ref>{{cite web |url=http://www.harvest-international.com/perspec/agt02/clim_tuban.htm |title=Tuban-Bojonegoro Will Resemble Texas |publisher=Harvest International's Journal For Decision Makers |volume=Vol. IV, No. 8, August 2002 |url-status=dead |archive-url=https://web.archive.org/web/20070617231819/http://www.harvest-international.com/perspec/agt02/clim_tuban.htm |archive-date=17 June 2007 }}</ref>

Communities in Bojonegoro have benefited from community development projects by foreign companies like ExxonMobil, which have built houses of worship, schools, community health centers, and infrastructure.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10125 |date=15 March 2006 |title=ExxonMobil helping community development in Bojonegoro |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> However, oil production is becoming a source of controversy.

Some [[Regional Representatives Council]] (''Dewan Perwakilan Rakyat'', DPD) members grouped in the People's Front for the Salvation of the Cepu Block (GRPBC) have called for the cancellation of the joint operation agreement between the government and ExxonMobil on the Cepu Block oil fields. They demand it is canceled because the agreement had been signed "in an atmosphere rife with suspected corruption, collusion and [[nepotism]], and based on a public lie" and will make the Indonesian government lose US$1.32 billion of revenue.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10648 |date=28 March 2005 |title=DPD members call for cancellation of Cepu Block agreement |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> And Now, the New Bojonegoro Leader (Bupati Bojonegoro) are waiting for a new agreement with ExxonMobil to avoid corruption, collusion, and [[nepotism]].

Oil exploration and production activity has also caused several accidents. On August 31, 2006, a gas leak in the Sukowati-5 oil well (Operated by JOB Pertamina Petrochina East Java) released [[hydrogen sulfide]] gas to residential areas. At least 16 villagers had to be treated for [[suffocation]] because of the gas inhalation.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=19193 |date=31 August 2005 |title=Sukowati oil well belches gas (H2S) kick again |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The [[Environmental science|environmental]] effects of the oil industry have become a concern of Bojonegoro residents. Some villagers claimed the presence of the oil well has not caused any improvement in the local economy and the village. Since the exploration of the Sukowati oil well in an area measuring five hectares in July 2005, the village's land has become drier and harvest significantly reduced.<ref>{{cite web |url=http://www.antara.co.id/en/seenws/?id=10553 |date=26 March 2005 |title=Farmers want review of environmental impact analysis on Sukowati oil well |publisher=[[ANTARA|Antara News Agency]]}}{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> There is also concern that income distribution inequality could cause [[social unrest]] when compounded with the Indonesian notorious reputation of corruption.