BP Migas is Unconstitutional, MK Says

Agus Sahbani, Mahinda Arkyasa

Constitutional Court (MK) has made a decision on the review of Law No. 22 of 2001 on Oil and Gas (Oil and Gas Law).

The decision revoked Article 1 (23), Article 4 (3), Article 41 (2), Article 44, Article 45, Article 48 (1), Article 59 (a), Article 61, and Article 63 of the Oil and Gas Law, which regulates the provisions on the Upstream Oil and Gas Activity Agency (BP Migas).

The decision stated that every authority, task, and function of BP Migas in managing upstream and downstream oil and gas activities is in contradiction with the 1945 Constitution. In other words, the decision dissolves BP Migas.

In addition to the abovementioned articles, MK also decided to strike down several phrases in the Oil and Gas Law, including “with the organizing agency…” in Article 11 (1) and “through the organizing agency…” in Article 20 (3).

Furthermore, phrases “based on the consideration of the organizing agency…” in Article 21 (1) and “the organizing agency and…” in Article 49 were also removed.

 “All matters that relate to BP Migas contradict the 1945 Constitution. Therefore, as of now, BP Migas’ duties and functions will be taken over by the [Minister of Energy and Mineral Resources] until a new law is issued to regulate the matter,” said Mahfud MD, chairman of the panel, Tuesday (13/11).

As previously reported, the petition for judicial review of the Oil and Gas Law was submitted by a group of individuals and religious organizations.

The applicants asked the court to review Article 1 (19), Article 1 (23), Article 3 point b, Article 4 (3), Article 6, Article 9, Article 10, Article 11 (2), Article 13, and Article 44.

The applicants argued that these articles contradict Article 28D (1), and Article 33 (2) and (3) of the 1945 Constitution.

It should be noted that several experts have also demanded that the Oil and Gas Law must be revoked.

(hot/jt)

Agus Sahbani, Mahinda Arkyasa

Constitutional Court (MK) has made a decision on the review of Law No. 22 of 2001 on Oil and Gas (Oil and Gas Law).

The decision revoked Article 1 (23), Article 4 (3), Article 41 (2), Article 44, Article 45, Article 48 (1), Article 59 (a), Article 61, and Article 63 of the Oil and Gas Law, which regulates the provisions on the Upstream Oil and Gas Activity Agency (BP Migas).

The decision stated that every authority, task, and function of BP Migas in managing upstream and downstream oil and gas activities is in contradiction with the 1945 Constitution. In other words, the decision dissolves BP Migas.

In addition to the abovementioned articles, MK also decided to strike down several phrases in the Oil and Gas Law, including “with the organizing agency…” in Article 11 (1) and “through the organizing agency…” in Article 20 (3).

Furthermore, phrases “based on the consideration of the organizing agency…” in Article 21 (1) and “the organizing agency and…” in Article 49 were also removed.

 “All matters that relate to BP Migas contradict the 1945 Constitution. Therefore, as of now, BP Migas’ duties and functions will be taken over by the [Minister of Energy and Mineral Resources] until a new law is issued to regulate the matter,” said Mahfud MD, chairman of the panel, Tuesday (13/11).

As previously reported, the petition for judicial review of the Oil and Gas Law was submitted by a group of individuals and religious organizations.

The applicants asked the court to review Article 1 (19), Article 1 (23), Article 3 point b, Article 4 (3), Article 6, Article 9, Article 10, Article 11 (2), Article 13, and Article 44.

The applicants argued that these articles contradict Article 28D (1), and Article 33 (2) and (3) of the 1945 Constitution.

It should be noted that several experts have also demanded that the Oil and Gas Law must be revoked.

(hot/jt)

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