Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Kartini L Makmur, Robert Sidauruk
The Ministry of Energy and Mineral Resources (Ministry) has emphasized that investment in upstream oil and gas industries requires legal and regulatory certainty, so that investors can run their businesses in Indonesia without any obstacles.
According to Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) plays an important role in ensuring such legal certainty.
He asserts that SKK Migas in its capacity as the Government’s representative must be seen by oil and gas contractors as a trustworthy institution.
“So if there are any problems in oil and gas contracts of work, the institution will take responsibility,” said Susilo during a focus group discussion on Certainty and Legal Protection for the Upstream Oil and Gas Industry in Jakarta on Monday.
In detail, Didi Sertiarto, Head of the Legal and Formalities Division at SKK Migas, explained that such legal certainty must also be guaranteed during the implementation of production sharing contracts (PSC). If a dispute arises, its resolution must be in accordance with the provisions of the PSC.
In relation to PT Chevron Pacific Indonesia’s case, Didi suggested that the Prosecutor should prior to investigations first consult with SKK Migas and the Ministry of Environmental Affairs about the case.
Didi explained that disputes related to the oil and gas sector do not necessarily constitute criminal matters. Therefore, Didi continued, the provisions of the PSC must be the first option for the resolution of disputes.
Likewise, Chandra M Hamzah, former Deputy Chairman of KPK, says that legal issues related to the upstream oil and gas industry are often caused by a lack of law enforcer knowledge on the mechanisms of a PSC and the concept of cost recovery.
Chandra further explained that provisions incorporated into PSCs are legally valid and are drafted in accordance with prevailing laws and regulations.
Hence, if the parties to the contract do not violate any provisions of the agreement, then there is no act against the law, a fundamental prerequisite element for a criminal offence.
“Under Supreme Court Decision No. 42K/Kr/1965, the judges held there is no act against the law if the State does not suffer any financial losses, public interest is served and the defendant does not make any unlawful profit,” Chandra explained.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
The Ministry of Energy and Mineral Resources (Ministry) has emphasized that investment in upstream oil and gas industries requires legal and regulatory certainty, so that investors can run their businesses in Indonesia without any obstacles.
According to Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) plays an important role in ensuring such legal certainty.
He asserts that SKK Migas in its capacity as the Government’s representative must be seen by oil and gas contractors as a trustworthy institution.
“So if there are any problems in oil and gas contracts of work, the institution will take responsibility,” said Susilo during a focus group discussion on Certainty and Legal Protection for the Upstream Oil and Gas Industry in Jakarta on Monday.
In detail, Didi Sertiarto, Head of the Legal and Formalities Division at SKK Migas, explained that such legal certainty must also be guaranteed during the implementation of production sharing contracts (PSC). If a dispute arises, its resolution must be in accordance with the provisions of the PSC.
In relation to PT Chevron Pacific Indonesia’s case, Didi suggested that the Prosecutor should prior to investigations first consult with SKK Migas and the Ministry of Environmental Affairs about the case.
Didi explained that disputes related to the oil and gas sector do not necessarily constitute criminal matters. Therefore, Didi continued, the provisions of the PSC must be the first option for the resolution of disputes.
Likewise, Chandra M Hamzah, former Deputy Chairman of KPK, says that legal issues related to the upstream oil and gas industry are often caused by a lack of law enforcer knowledge on the mechanisms of a PSC and the concept of cost recovery.
Chandra further explained that provisions incorporated into PSCs are legally valid and are drafted in accordance with prevailing laws and regulations.
Hence, if the parties to the contract do not violate any provisions of the agreement, then there is no act against the law, a fundamental prerequisite element for a criminal offence.
“Under Supreme Court Decision No. 42K/Kr/1965, the judges held there is no act against the law if the State does not suffer any financial losses, public interest is served and the defendant does not make any unlawful profit,” Chandra explained.
(hot/kc)