Oil and Gas Law Must be Revised to Protect National Interests

Fitri Novia Heriani, Andin Aditya Rahman

The Indonesian Democratic Party of Struggle (PDIP) faction at the House of Representatives (House) said that Indonesia’s oil and gas sector is now facing a constitutional crisis after the dissolution of BP Migas.

“It is time that we draft a law on oil and gas that is in favor of national interests. This law is expected to implement Article 33 of the 1945 Constitution,” said Puan Maharani, Chairman of PDIP during a seminar in Jakarta, Wednesday (27/2).

Article 33 (2) of the 1945 Constitution stated that key industries—one of them being the oil and gas sector—must be controlled by the State. The oil and gas sector itself is currently regulated under Law No. 22 of 2001 on Oil and Gas (Law), which is being revised by the House.

Puan hoped that Commission VII of the House will immediately revise the Law—specifically oil and gas management provisions—in order to support long-term national development and to limit foreign party control.

Meanwhile, Daryatmo Mardiyanto, legislator from Commission VII, stated that the draft bill on the revision of the Law is also open for discussion regarding alternative funding mechanisms. Commission VII considers to provide oil and gas exploration funds from the State Budget.

He explained that the fund is expected to become the permanent funding source for the oil and gas sector, which would diminish reliance on foreign funding sources.  

Daryatmo’s recommendation is supported by Arif Budimanta, parliament member from Commission XI. Arif stated that this will indirectly improve the oil and gas sector, which is currently facing difficulties regarding financing of exploration.

“We have the necessary human resources and with the State Budget, we won’t need the services of [foreign] parties,” Arif concluded.

(jt/hot)

Fitri Novia Heriani, Andin Aditya Rahman

The Indonesian Democratic Party of Struggle (PDIP) faction at the House of Representatives (House) said that Indonesia’s oil and gas sector is now facing a constitutional crisis after the dissolution of BP Migas.

“It is time that we draft a law on oil and gas that is in favor of national interests. This law is expected to implement Article 33 of the 1945 Constitution,” said Puan Maharani, Chairman of PDIP during a seminar in Jakarta, Wednesday (27/2).

Article 33 (2) of the 1945 Constitution stated that key industries—one of them being the oil and gas sector—must be controlled by the State. The oil and gas sector itself is currently regulated under Law No. 22 of 2001 on Oil and Gas (Law), which is being revised by the House.

Puan hoped that Commission VII of the House will immediately revise the Law—specifically oil and gas management provisions—in order to support long-term national development and to limit foreign party control.

Meanwhile, Daryatmo Mardiyanto, legislator from Commission VII, stated that the draft bill on the revision of the Law is also open for discussion regarding alternative funding mechanisms. Commission VII considers to provide oil and gas exploration funds from the State Budget.

He explained that the fund is expected to become the permanent funding source for the oil and gas sector, which would diminish reliance on foreign funding sources.  

Daryatmo’s recommendation is supported by Arif Budimanta, parliament member from Commission XI. Arif stated that this will indirectly improve the oil and gas sector, which is currently facing difficulties regarding financing of exploration.

“We have the necessary human resources and with the State Budget, we won’t need the services of [foreign] parties,” Arif concluded.

(jt/hot)

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