Absolute Authority of SKK Migas Opportunities for Acts of Corruption

Rofiq Hidayat, Robert Sidauruk

The recent SKK Migas corruption scandal including the arrest of the Head of SKK Migas Rubi Rubiandini came as little surprise to many commentators and industry insiders aware of the extensive powers and authority of SKK Migas in the oil and gas sector.

The potential for the abuse of its authority by SKK Migas was always crystal clear particularly given the significant monetary sums it dealt without strict supervision.

Former Vice President Jusuf Kalla has suggested implementing a more equitable distribution of authority between the government institutions involved in the oil and gas industry.

He said that such measures can be implemented, for example, by introducing transparency principles before, during, and after oil and gas tenders organized by SKK Migas.

Likewise, Satya Widya Yudha, a member of Commission VII at the House of Representative (DPR), contends that limiting SKK Migas is the optimum solution to prevent corruption in the oil and gas sector.

Satya suggests optimizing the role of the Director General of Oil and Gas (Dirjen Migas) to take over several of the current functions under the authority of SKK Migas.

“There should not be a centralization of authority in a single institution,” Satya argues.

However, Jusuf Kalla and Satya disagree with respect to the proposal to dissolve SKK Migas just because of the current corruption scandal.

Satya further contends that any dissolution must be based on a thorough and comprehensive consideration and evaluation of SKK Migas’ performance and also conducting internal reform within SKK Migas as well as the Ministry of Energy and Mineral Resources.

Dewi Aryani Hilma, member of Commission VII at the DPR, believes that the Government must ensure the governance of oil and gas production is in accordance with the prevailing laws and regulations to prevent the tendency for abuses of power in the oil and gas sector.

Dewi also supported KPK’s arrest of Rudi Rubiandini and stated, “this is the right time for the KPK to take action against the oil and gas sector.”

(hot/kc)

Rofiq Hidayat, Robert Sidauruk

The recent SKK Migas corruption scandal including the arrest of the Head of SKK Migas Rubi Rubiandini came as little surprise to many commentators and industry insiders aware of the extensive powers and authority of SKK Migas in the oil and gas sector.

The potential for the abuse of its authority by SKK Migas was always crystal clear particularly given the significant monetary sums it dealt without strict supervision.

Former Vice President Jusuf Kalla has suggested implementing a more equitable distribution of authority between the government institutions involved in the oil and gas industry.

He said that such measures can be implemented, for example, by introducing transparency principles before, during, and after oil and gas tenders organized by SKK Migas.

Likewise, Satya Widya Yudha, a member of Commission VII at the House of Representative (DPR), contends that limiting SKK Migas is the optimum solution to prevent corruption in the oil and gas sector.

Satya suggests optimizing the role of the Director General of Oil and Gas (Dirjen Migas) to take over several of the current functions under the authority of SKK Migas.

“There should not be a centralization of authority in a single institution,” Satya argues.

However, Jusuf Kalla and Satya disagree with respect to the proposal to dissolve SKK Migas just because of the current corruption scandal.

Satya further contends that any dissolution must be based on a thorough and comprehensive consideration and evaluation of SKK Migas’ performance and also conducting internal reform within SKK Migas as well as the Ministry of Energy and Mineral Resources.

Dewi Aryani Hilma, member of Commission VII at the DPR, believes that the Government must ensure the governance of oil and gas production is in accordance with the prevailing laws and regulations to prevent the tendency for abuses of power in the oil and gas sector.

Dewi also supported KPK’s arrest of Rudi Rubiandini and stated, “this is the right time for the KPK to take action against the oil and gas sector.”

(hot/kc)

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