Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami M Agus Yozami, Rofiq Hidayat, Agus Sahbani, Mahinda Arkyasa
The Constitutional Court Decision that dissolves the Upstream Oil and Gas Agency (BP Migas) has generated many responses, particularly from BP Migas itself.
Raden Priyono, Head of BP Migas, stated that the decision will have a significant impact on Indonesia’s oil and gas investment climate.
One of the effects of the decision is that contracts signed by BP Migas with other parties will also be considered as unconstitutional.
He informed that since BP Migas’ establishment in 2002, it has signed 353 contracts. “In accordance with the decision, the contracts also became unconstitutional,” Priyono stated on Tuesday (13/11).
Priyono added that the decision will also affect Indonesia’s oil and gas production, because there will be no agency in charge of issuing operational licenses or controlling and supervising oil and gas activities.
He further said that due to the decision, the state might suffer a USD 35 billion revenue loss each year, which equates to a total of IDR 1 trillion.
Priyono expected that the Government will immediately decide which institution will take over BP Migas’ duties and functions in the oil and gas sector.
As previously reported, 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 Law No. 22 of 2001 on Oil and Gas. These articles regulate the provisions on BP Migas.
The decision stated that BP Migas’ duties and functions in managing upstream oil and gas activities are in contradiction with the 1945 Constitution.
Constitutional Judge Akil Mochtar stated that based on the decision, BP Migas is no longer allowed to operate.
The Government will take over BP Migas’ tasks and responsibilities until a new law on BP Migas is issued.
Minister of State Owned Enterprise Dahlan Iskan refused to give any comment regarding the decision. Dahlan said that his ministry will coordinate with Ministry of Energy and Mineral Resources (ESDM) and Coordinating Ministry for Economic Affairs.
“We will find out which institution will take over BP Migas’s authority after a consultation with related parties,” Dahlan said short.
Meanwhile, Coordinating Minister for the Economy Hatta Rajasa stated that BP Migas’ tasks and responsibilities will be taken over by ESDM.
The Government, Hatta said, will issue a new regulation to address the absence of a regulatory framework on oil and gas management.
“The Government is currently discussing the issue with ESDM, Minister of Finance, and Minister of Law and Human Rights,” he emphasized.
ESDM Minister Jero Wacik requested that investors and BP Migas employees proceed with their normal activities. He also confirmed that his ministry is ready to undertake all of BP Migas’ tasks and responsibilities.
Jero asserted that BP Migas contracts with other parties would remain legal. “There is no need for doubts, production will commence normally and legally,” he concluded.
(ant/hot/jt)
M Agus Yozami, Rofiq Hidayat, Agus Sahbani, Mahinda Arkyasa
The Constitutional Court Decision that dissolves the Upstream Oil and Gas Agency (BP Migas) has generated many responses, particularly from BP Migas itself.
Raden Priyono, Head of BP Migas, stated that the decision will have a significant impact on Indonesia’s oil and gas investment climate.
One of the effects of the decision is that contracts signed by BP Migas with other parties will also be considered as unconstitutional.
He informed that since BP Migas’ establishment in 2002, it has signed 353 contracts. “In accordance with the decision, the contracts also became unconstitutional,” Priyono stated on Tuesday (13/11).
Priyono added that the decision will also affect Indonesia’s oil and gas production, because there will be no agency in charge of issuing operational licenses or controlling and supervising oil and gas activities.
He further said that due to the decision, the state might suffer a USD 35 billion revenue loss each year, which equates to a total of IDR 1 trillion.
Priyono expected that the Government will immediately decide which institution will take over BP Migas’ duties and functions in the oil and gas sector.
As previously reported, 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 Law No. 22 of 2001 on Oil and Gas. These articles regulate the provisions on BP Migas.
The decision stated that BP Migas’ duties and functions in managing upstream oil and gas activities are in contradiction with the 1945 Constitution.
Constitutional Judge Akil Mochtar stated that based on the decision, BP Migas is no longer allowed to operate.
The Government will take over BP Migas’ tasks and responsibilities until a new law on BP Migas is issued.
Minister of State Owned Enterprise Dahlan Iskan refused to give any comment regarding the decision. Dahlan said that his ministry will coordinate with Ministry of Energy and Mineral Resources (ESDM) and Coordinating Ministry for Economic Affairs.
“We will find out which institution will take over BP Migas’s authority after a consultation with related parties,” Dahlan said short.
Meanwhile, Coordinating Minister for the Economy Hatta Rajasa stated that BP Migas’ tasks and responsibilities will be taken over by ESDM.
The Government, Hatta said, will issue a new regulation to address the absence of a regulatory framework on oil and gas management.
“The Government is currently discussing the issue with ESDM, Minister of Finance, and Minister of Law and Human Rights,” he emphasized.
ESDM Minister Jero Wacik requested that investors and BP Migas employees proceed with their normal activities. He also confirmed that his ministry is ready to undertake all of BP Migas’ tasks and responsibilities.
Jero asserted that BP Migas contracts with other parties would remain legal. “There is no need for doubts, production will commence normally and legally,” he concluded.
(ant/hot/jt)