Supervision of SKK Migas Has Been Deficient Says Minister

Fitri Novia Heriani, Robert Sidauruk

Following the arrest of Rudi Rubiandini, the Head of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) by the Corruption Eradication Commission, Jero Wacik , the Chairman of the SKK Migas Supervision Commission, has admitted that  the internal control mechanisms of the institution have not performed optimally.

“It is an awful surprise knowing that there are still loopholes for corruption in this institution (SKK Migas),” said Jero Wacik who is also the Minister of Energy and Mineral Resources (ESDM), at his office in Jakarta on Wednesday.

SKK Migas is under the supervision of its internal  Supervision Commission, chaired by the Minister of ESDM, and comprised of several other officials including the Deputy Minister of Finance, Anny Ratnawati, the Deputy Minister of ESDM Susilo Siswoutomo, and the Head of the Indonesia Investment Coordinating Board Chatib Basri,—currently the Minister of Finance.

Jero informed that the Commission has met to consider Rudi’s arrest and to discuss what further actions that need to be taken, to create an effective  supervision mechanism going forward. Such a mechanism will be implemented through   several new internal regulations.

In regard to  Kernel Oil Pte Ltd (KOPL) that allegedly bribed Rubi Rubiandini with USD 700,000, Jero claims  he hasnever heard of that company. As Chairman of the Commission, he admitted that SKK Migas has previously asked for his opinion on several strategic proposal offered by many companies but not KOPL.

During the interview Jero also denied rumors that RudI’s arrest would destabilize investment in the  oil and gas industries  in Indonesia which may also possibly affect lifting production. Lifting production has  been addressed under Presidential Decree No. 93 of 2013.

While the Decree mainly deals with the temporary dismissal of Rudi, it is also aims to ensure continued certainty and sustainability in domestic oil and gas production.

“There is nothing to  be worried about. The Government assures that the management of SKK Migas will perform as mandated by the Decree,” Jero concluded.

(hot/kc)

Fitri Novia Heriani, Robert Sidauruk

Following the arrest of Rudi Rubiandini, the Head of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) by the Corruption Eradication Commission, Jero Wacik , the Chairman of the SKK Migas Supervision Commission, has admitted that  the internal control mechanisms of the institution have not performed optimally.

“It is an awful surprise knowing that there are still loopholes for corruption in this institution (SKK Migas),” said Jero Wacik who is also the Minister of Energy and Mineral Resources (ESDM), at his office in Jakarta on Wednesday.

SKK Migas is under the supervision of its internal  Supervision Commission, chaired by the Minister of ESDM, and comprised of several other officials including the Deputy Minister of Finance, Anny Ratnawati, the Deputy Minister of ESDM Susilo Siswoutomo, and the Head of the Indonesia Investment Coordinating Board Chatib Basri,—currently the Minister of Finance.

Jero informed that the Commission has met to consider Rudi’s arrest and to discuss what further actions that need to be taken, to create an effective  supervision mechanism going forward. Such a mechanism will be implemented through   several new internal regulations.

In regard to  Kernel Oil Pte Ltd (KOPL) that allegedly bribed Rubi Rubiandini with USD 700,000, Jero claims  he hasnever heard of that company. As Chairman of the Commission, he admitted that SKK Migas has previously asked for his opinion on several strategic proposal offered by many companies but not KOPL.

During the interview Jero also denied rumors that RudI’s arrest would destabilize investment in the  oil and gas industries  in Indonesia which may also possibly affect lifting production. Lifting production has  been addressed under Presidential Decree No. 93 of 2013.

While the Decree mainly deals with the temporary dismissal of Rudi, it is also aims to ensure continued certainty and sustainability in domestic oil and gas production.

“There is nothing to  be worried about. The Government assures that the management of SKK Migas will perform as mandated by the Decree,” Jero concluded.

(hot/kc)

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