Expert Criticizes SKK Migas

Rimba Supriyatna, Mahinda Arkyasa

Expert asserted that the Presidential Decree No. 9 of 2013 on Management of Upstream Oil and Gas Activities (Decree, see ILB No. 2077) fails to carry out the mandate set by the Constitutional Court Decision No. 36/PUU-X/2012 (Decision, see ILB No. 2036), which dissolves the Upstream Oil and Gas Activity Agency (BP Migas).

Margarito Khamis, a constitutional and administrative law expert, stated to hukumonline, Friday (18/1) that the Decree—which establishes Special Work Unit for Upstream Oil and Gas Activities (“SKK Migas”)—does not make any difference because it is basically BP Migas under a new name.

He explained that SKK Migas is problematic “because it includes governmental elements,” which means that the state will be liable for any disputes between SKK Migas and foreign investors.

Margarito also argued that the Decree contradicts the Decision, because it fails to establish an independent institution capable of engaging in contracts with foreign parties. He explained that such institution is needed to protect the Government from any liability.

As a response, Hadi Prasetyo, Head of the Public Relation Division at SKK Migas, admitted that SKK Migas is similar to BP Migas. However, unlike BP Migas, “SKK Migas has made an improvement because it has an oversight committee,” Hadi stated to hukumonline on Saturday (19/1). He explained that the oversight committee will oversee SKK Migas carrying out its duties and responsibilities.

Based on Article 3 of the Decree, the oversight committee will be led by the Minister of Energy and Mineral Resources as the committee’s chairman. Deputy Minister of Finance will act as the committee’s deputy chairman, while the remaining members of the committee are the Head of Indonesia Investment Coordinating Board (BKPM) and Deputy Minister of Energy and Mineral Resources.

(jt/hot)

Rimba Supriyatna, Mahinda Arkyasa

Expert asserted that the Presidential Decree No. 9 of 2013 on Management of Upstream Oil and Gas Activities (Decree, see ILB No. 2077) fails to carry out the mandate set by the Constitutional Court Decision No. 36/PUU-X/2012 (Decision, see ILB No. 2036), which dissolves the Upstream Oil and Gas Activity Agency (BP Migas).

Margarito Khamis, a constitutional and administrative law expert, stated to hukumonline, Friday (18/1) that the Decree—which establishes Special Work Unit for Upstream Oil and Gas Activities (“SKK Migas”)—does not make any difference because it is basically BP Migas under a new name.

He explained that SKK Migas is problematic “because it includes governmental elements,” which means that the state will be liable for any disputes between SKK Migas and foreign investors.

Margarito also argued that the Decree contradicts the Decision, because it fails to establish an independent institution capable of engaging in contracts with foreign parties. He explained that such institution is needed to protect the Government from any liability.

As a response, Hadi Prasetyo, Head of the Public Relation Division at SKK Migas, admitted that SKK Migas is similar to BP Migas. However, unlike BP Migas, “SKK Migas has made an improvement because it has an oversight committee,” Hadi stated to hukumonline on Saturday (19/1). He explained that the oversight committee will oversee SKK Migas carrying out its duties and responsibilities.

Based on Article 3 of the Decree, the oversight committee will be led by the Minister of Energy and Mineral Resources as the committee’s chairman. Deputy Minister of Finance will act as the committee’s deputy chairman, while the remaining members of the committee are the Head of Indonesia Investment Coordinating Board (BKPM) and Deputy Minister of Energy and Mineral Resources.

(jt/hot)

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