Draft Government Regulation - Upstream Oil & Gas Activities

The Government is in the middle of deliberations over a Draft Government Regulation (RPP / Rancangan Peraturan Pemerintah) which once agreed will replace Government Regulation No. 35 of 2004 (PP 35/2004). The reason for a new Government Regulation to replace the current one is that the current one is not sufficiently detailed and therefore lacks the necessary controls that it ought to have over the activities conducted in the oil & gas sector.

The other key element for the RPP is that in the post Constitutional Court decision on the judicial review of Law No. 22 of 2001 on Oil & Gas there have been significant changes in the activities of the upstream oil & gas sector. Although the RPP envisages the repeal of PP 35/2004 there remains a possibility that the RPP will be streamlined and ultimately amend only the provisions deemed to be poor on detail.