Downstream Oil & Gas Activities - Draft Government Regulation

This Draft Government Regulation (Draft) is the downstream component (see ILB 29/11/2006 for the upstream component) of the regulations that are to be put into place to facilitate compliance with the revised regulatory framework in the post-Constitutional Court judicial review of the Oil and Gas Law (Law No. 22 of 2001). The primary purpose of the Draft is to increase legal certainty while providing for a much improved investment climate.

The Draft is still in-house at the Department of Energy and Mineral Resources (Departemen Energi dan Sumber Daya Mineral / ESDM) undergoing additional debate. When a final draft is agreed it is expected that this will be socialized and submitted to the President. It is worth noting that this is not an amendment regulation and the provisions contained in Government Regulation No. 36 of 2004 remain in force in so far as they do not conflict with the provisions of this Draft (on confirmation).