Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami
Fitri Novia Heriani / Mahinda Arkyasa
In a press conference on Wednesday (14/11), Riswan Helmi Nasution, Chairman of the Permanent Committee on Minerals of the Indonesian Chamber of Commerce and Industry (KADIN), asserted that the dissolution of the Upstream Oil and Gas Activity Agency (BP Migas) was a reasonable decision.
As previously reported, the Constitutional Court (MK) has rendered Decision No. 36/PUU-X/2012 (Decision) that 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.
The abovementioned articles stipulate provisions regarding BP Migas. The decision stated that BP Migas’ duties and functions in managing the upstream oil and gas activities contradict the 1945 Constitution. As a result, BP Migas was dissolved (for further discussion on the decision see ILB No. 2036).
Riswan stated that through the Ministry of Energy and Mineral Resources, the Government should immediately undertake BP Migas’ obligations. He is also certain that any signed contracts between BP Migas and investors will remain valid.
“I believe the contracts will remain valid, as it is not easy to annul them. If that were to happen, it would be problematic,” he stated.
Riswan worries that investors will file a lawsuit against the Government if the Government does not take immediate action as a follow up to the decision. Such condition, he stated, will certainly affect the investment climate in Indonesia.
He also admitted that the Government’s decision to form BP Migas was right and proper. However, he stated that in practice, BP Migas overstepped its authority by determining crude oil prices and by setting gas production quota. He explained that initially, BP Migas was formed as a non-profit Government institution authorized only to monitor and control the upstream oil and gas activities.
In order to minimize potential losses due to the MK decision, Executive Director of Indonesian Petroleum Association (IPA) Dipnala Tamzil urged the Government to provide guidelines for oil and gas companies.
He added that IPA will fully support and is committed to the Government’s efforts to sustain oil and gas production, to protect state revenue, and also to maintain energy supply for the country.
It should be noted that IPA was established in 1971. Currently, IPA has 53 domestic and foreign-owned oil and gas companies, 111 oil and gas supporting businesses, and 2,000 individual members. IPA represents 90% of Indonesia’s oil and gas exploration and production activities.
(ds/jt)
Fitri Novia Heriani / Mahinda Arkyasa
In a press conference on Wednesday (14/11), Riswan Helmi Nasution, Chairman of the Permanent Committee on Minerals of the Indonesian Chamber of Commerce and Industry (KADIN), asserted that the dissolution of the Upstream Oil and Gas Activity Agency (BP Migas) was a reasonable decision.
As previously reported, the Constitutional Court (MK) has rendered Decision No. 36/PUU-X/2012 (Decision) that 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.
The abovementioned articles stipulate provisions regarding BP Migas. The decision stated that BP Migas’ duties and functions in managing the upstream oil and gas activities contradict the 1945 Constitution. As a result, BP Migas was dissolved (for further discussion on the decision see ILB No. 2036).
Riswan stated that through the Ministry of Energy and Mineral Resources, the Government should immediately undertake BP Migas’ obligations. He is also certain that any signed contracts between BP Migas and investors will remain valid.
“I believe the contracts will remain valid, as it is not easy to annul them. If that were to happen, it would be problematic,” he stated.
Riswan worries that investors will file a lawsuit against the Government if the Government does not take immediate action as a follow up to the decision. Such condition, he stated, will certainly affect the investment climate in Indonesia.
He also admitted that the Government’s decision to form BP Migas was right and proper. However, he stated that in practice, BP Migas overstepped its authority by determining crude oil prices and by setting gas production quota. He explained that initially, BP Migas was formed as a non-profit Government institution authorized only to monitor and control the upstream oil and gas activities.
In order to minimize potential losses due to the MK decision, Executive Director of Indonesian Petroleum Association (IPA) Dipnala Tamzil urged the Government to provide guidelines for oil and gas companies.
He added that IPA will fully support and is committed to the Government’s efforts to sustain oil and gas production, to protect state revenue, and also to maintain energy supply for the country.
It should be noted that IPA was established in 1971. Currently, IPA has 53 domestic and foreign-owned oil and gas companies, 111 oil and gas supporting businesses, and 2,000 individual members. IPA represents 90% of Indonesia’s oil and gas exploration and production activities.
(ds/jt)