Ada Pertanyaan? Hubungi Kami 
2026 Hak Cipta Milik Hukumonline.com
Produk Pilihan
Ada Pertanyaan? Hubungi Kami Kartini L Makmur, Robert Sidauruk
The poorly drafted legal framework for oil and gas sector, as provided under the Law No. 22 of 2001on Oil and Gas (Oil and Gas Law), has been criticized as the prime factor that causes legal uncertainty on national’s oil and gas industry. This issue remains the biggest obstacle for businesses to confidently invest on the field.
Sammy Hamzah, Secretary of Indonesia Petroleum Association (IPA), said that such situation urges an amendment to the Oil and Gas Law. However, Mr. Hamzah perceived that the Government fails for being transparent in discussing the amendment, as it did not invite the related stakeholders to discuss the provisions under the amendment.
“We (IPA) have not received the amendment draft. Any prior meetings with the Government were merely held to inform the amendment. Therefore, we are hopping transparency from the Government on the discussing it,” said Mr. Hamzah during a seminar on national energy security in Jakarta on Monday.
Mr. Hamzah further stressed on the importance of a better legislation to accommodate oil and gas investment. He was referred to the recent issue on land and property tax between the Government and contractors of Cooperation Contract.
According to Mr. Hamzah, such issue occurred because the Cooperation Contract is silent on the land and property tax, specific for upstream oil and gas industry. As a consequence, the Government and businesses have their own interpretation on the matter.
“Businesses will not dispute provision on profit distribution, but the most important is the commitment to fully perform the contract,” Mr. Hamzah emphasized.
Muhammad, Secretary General of Indonesia Energy Watch (IEW), shared Mr. Hamzah view that all the issues on national oil and gas is rooted from the poorly drafted Oil and Gas Law. According to Mr. Muhammad, Indonesia has no sufficient provision on a decent national oil and gas management. Therefore, amendment to the Oil and Gas Law is the only option to reform the industry.
“The notion to revise Oil and Gas Law has been proposed from 2010. However, the Draft Bill seems to be lost in limbo,” Mr. Muhammad stated.
Responding to the amendment issue, Dito Ganundito, Member of Commission VII at the House of Representatives, said that the parliament is willing to accelerate the discussion.
While he cannot assure when the amendment will be passed, Mr. Ganundito said that the amendment is already submitted to the Legislative Office (Badan Legislasi) at the House for further synchronization and harmonization.
“We are willing to speed up the discussion, as it is the most anticipated legislation for oil and gas business. When the Legislative Office finished its task, the amendment will be forwarded to plenary session for final discussion before it passed to the President,” Mr. Ganundito concluded.
(For more discussion on the Draft Bill see ILD No. 293 and ILD No. 351)
(hot/kc)
Kartini L Makmur, Robert Sidauruk
The poorly drafted legal framework for oil and gas sector, as provided under the Law No. 22 of 2001on Oil and Gas (Oil and Gas Law), has been criticized as the prime factor that causes legal uncertainty on national’s oil and gas industry. This issue remains the biggest obstacle for businesses to confidently invest on the field.
Sammy Hamzah, Secretary of Indonesia Petroleum Association (IPA), said that such situation urges an amendment to the Oil and Gas Law. However, Mr. Hamzah perceived that the Government fails for being transparent in discussing the amendment, as it did not invite the related stakeholders to discuss the provisions under the amendment.
“We (IPA) have not received the amendment draft. Any prior meetings with the Government were merely held to inform the amendment. Therefore, we are hopping transparency from the Government on the discussing it,” said Mr. Hamzah during a seminar on national energy security in Jakarta on Monday.
Mr. Hamzah further stressed on the importance of a better legislation to accommodate oil and gas investment. He was referred to the recent issue on land and property tax between the Government and contractors of Cooperation Contract.
According to Mr. Hamzah, such issue occurred because the Cooperation Contract is silent on the land and property tax, specific for upstream oil and gas industry. As a consequence, the Government and businesses have their own interpretation on the matter.
“Businesses will not dispute provision on profit distribution, but the most important is the commitment to fully perform the contract,” Mr. Hamzah emphasized.
Muhammad, Secretary General of Indonesia Energy Watch (IEW), shared Mr. Hamzah view that all the issues on national oil and gas is rooted from the poorly drafted Oil and Gas Law. According to Mr. Muhammad, Indonesia has no sufficient provision on a decent national oil and gas management. Therefore, amendment to the Oil and Gas Law is the only option to reform the industry.
“The notion to revise Oil and Gas Law has been proposed from 2010. However, the Draft Bill seems to be lost in limbo,” Mr. Muhammad stated.
Responding to the amendment issue, Dito Ganundito, Member of Commission VII at the House of Representatives, said that the parliament is willing to accelerate the discussion.
While he cannot assure when the amendment will be passed, Mr. Ganundito said that the amendment is already submitted to the Legislative Office (Badan Legislasi) at the House for further synchronization and harmonization.
“We are willing to speed up the discussion, as it is the most anticipated legislation for oil and gas business. When the Legislative Office finished its task, the amendment will be forwarded to plenary session for final discussion before it passed to the President,” Mr. Ganundito concluded.
(For more discussion on the Draft Bill see ILD No. 293 and ILD No. 351)
(hot/kc)