Govt to Accelerate Oil and Gas Law Revision

 
Christina Desy, Kartini L Makmur
 
Wasting no time after his appointment, Sudirman Said, the new Minister of Energy and Mineral Resources, has prepared a list of agenda items to be attended to during his term of office. One prominent item is to accelerate the long-awaited revision of Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”).
 
Of concern to Mr. Said’s is that the revision has been discussed for too long. He aims to review existing revision drafts and then propose a final draft to be passed by the House of Representatives.
 
Of the many key revision points, Mr. Said wants to prioritizes review of those provisions related to the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas). This unit replaced the Oil and Gas Supervising Board (BP Migas) after it was dissolved by the Constitutional Court in November 2012.
 
To provide better certainty for investors, Mr. Said that he will keep SKK Migas’ position as the oversight institution for the oil and gas sector. The legal form of SKK Migas, he continued, will remain the same until the revision of the Oil and Gas Law is issued. Mr. Said explained that his team is currently searching for candidates to be appointed as the chairperson of SKK Micgas.
 
“All in all, SKK Migas will still function as the supervising board for the oil and gas sector,” said Mr. Said.
 
Taking a different approach, Kurtubi, an oil and gas expert, is suggesting that SKK Migas be merged under Pertamina. He is of the view that a merger would provide better investor-friendly licensing procedures, unlike the current complicated bureaucratic processes under the SKK Migas administration. Mr. Kurtubi also indicated that corruption in SKK Migas is a concern.
 
Mr Kurtubi believes SKK Migas is contrary to newly elected President Widodo’s vision and mission to simplify licensing procedures and eradicate the oil and gas mafia. That being the case, Mr. Kurtubi recommends the new President issue a presidential regulation to dissolve SKK Migas.
 
(hot/kc)
 
Christina Desy, Kartini L Makmur
 
Wasting no time after his appointment, Sudirman Said, the new Minister of Energy and Mineral Resources, has prepared a list of agenda items to be attended to during his term of office. One prominent item is to accelerate the long-awaited revision of Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”).
 
Of concern to Mr. Said’s is that the revision has been discussed for too long. He aims to review existing revision drafts and then propose a final draft to be passed by the House of Representatives.
 
Of the many key revision points, Mr. Said wants to prioritizes review of those provisions related to the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas). This unit replaced the Oil and Gas Supervising Board (BP Migas) after it was dissolved by the Constitutional Court in November 2012.
 
To provide better certainty for investors, Mr. Said that he will keep SKK Migas’ position as the oversight institution for the oil and gas sector. The legal form of SKK Migas, he continued, will remain the same until the revision of the Oil and Gas Law is issued. Mr. Said explained that his team is currently searching for candidates to be appointed as the chairperson of SKK Micgas.
 
“All in all, SKK Migas will still function as the supervising board for the oil and gas sector,” said Mr. Said.
 
Taking a different approach, Kurtubi, an oil and gas expert, is suggesting that SKK Migas be merged under Pertamina. He is of the view that a merger would provide better investor-friendly licensing procedures, unlike the current complicated bureaucratic processes under the SKK Migas administration. Mr. Kurtubi also indicated that corruption in SKK Migas is a concern.
 
Mr Kurtubi believes SKK Migas is contrary to newly elected President Widodo’s vision and mission to simplify licensing procedures and eradicate the oil and gas mafia. That being the case, Mr. Kurtubi recommends the new President issue a presidential regulation to dissolve SKK Migas.
 
(hot/kc)
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