Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini Laras Makmur
As crucially fundamental to the livelihood of the Indonesian people, discourse on the oil and gas sector never fails to draw the public’s attention. The current main controversy centers around the subsidized fuel price which has raised opinions from many circles.
One such view is that expressed by Sofyano Zakaria, the Director of Public Policy Study Center. Instead of highlighting whether or not the government should increase the fuel price, Mr. Zakaria believes that the fuel subsidy violates both the 1945 Constitution and Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”).
Under the 1945 Constitution, the government is indeed required to take care of the poor and needy. Related provisions are incorporated under many laws and regulations, including the Oil and Gas Law, which states that the government is responsible to certain groups of people in regard to oil and gas prices.
Actual implementation, however, seems to be being applied without the necessary detailed consideration and ultimately misses the target, with fuel subsidies more enjoyed by the well off.
“Giving the subsidy to all citizens, without considering their economic situation can be considered as a violation,” Mr. Zakaria said last Friday in Jakarta.
Mr. Zakaria is urging the government to limit and better specify parties entitled to subsidized fuel. According to Mr. Zakaria, motorcycles and public transportation should still have the benefit of subsidized fuel, but not owners of privately-owned four-wheeled vehicles.
To ensure proper enforcement, Mr. Zakaria suggests the government immediately set out such limitations in a ministerial regulation, such as the Minister of Energy and Natural Resources Regulation No. 1 of 2013 on Fuel Utilization Control, which limits the use of subsidized fuel for vehicles in mining and plantation industries.
Sharing Mr. Zakaria’s opinion, Sudirman Said, the Minister of Energy and Natural Resources, is aware of his responsibility to ensure that subsidized fuel is only utilized by entitled parties. However, the Minister admits that to do so is difficult as is keeping an eye on who uses what fuel.
Consequently, the Minister is seeking the support of the Indonesian people to help him better manage the oil and gas sector under better self-awareness and the non-use of subsidized fuel by parties they are not entitled to do so.
“The haves should not use subsidized fuel,” the Minister asserted.
SKK Migas Destiny
Other than ensuring a well-targeted allocation of subsidized fuel, the Ministealr’s addition homework includes finalizing the revision to the Oil and Gas Law. One urgent issue is to determine the status of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), which is currently the supervisor of the upstream oil and gas upstream.
Luluk Sumiarso, former Director General of Oil and Gas at the Ministry of Energy and Natural Resources, is suggesting two options. The first one is to establish SKK Migas as a state-owned enterprise (badan usaha milik negara – BUMN). Under this approach, Mr. Sumiarso said that SKK Migas must have operate under its own mechanisms which differ from other BUMNs, although he did not elaborate further.
As a second option, Mr. Sumiarso sees a possibility for SKK Migas to be established as an entity like the Financial Services Authority (OJK). Under this approach, SKK Migas will have full authority to supervise upstream oil and gas industries, although this means that the government must also establish a specific supervising authority for the downstream oil and gas industry.
Responding to these issues, Johanes Widjonarko, Head of SKK Migas, admits that SKK Migas does not have the capacity to determine their own status in the future. However, SKK Migas will still contribute their views derived from its experiences.
Furthermore, Mr. Widjanarko stated that SKK Migas will follow the government’s instructions as he believes that any measures taken by the government must be based on a comprehensive consideration of all relevant factors. Above all, Mr. Widjanarko wants to see better management of the oil and gas sector.
(hot/kc)
Christina Desy, Kartini Laras Makmur
As crucially fundamental to the livelihood of the Indonesian people, discourse on the oil and gas sector never fails to draw the public’s attention. The current main controversy centers around the subsidized fuel price which has raised opinions from many circles.
One such view is that expressed by Sofyano Zakaria, the Director of Public Policy Study Center. Instead of highlighting whether or not the government should increase the fuel price, Mr. Zakaria believes that the fuel subsidy violates both the 1945 Constitution and Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”).
Under the 1945 Constitution, the government is indeed required to take care of the poor and needy. Related provisions are incorporated under many laws and regulations, including the Oil and Gas Law, which states that the government is responsible to certain groups of people in regard to oil and gas prices.
Actual implementation, however, seems to be being applied without the necessary detailed consideration and ultimately misses the target, with fuel subsidies more enjoyed by the well off.
“Giving the subsidy to all citizens, without considering their economic situation can be considered as a violation,” Mr. Zakaria said last Friday in Jakarta.
Mr. Zakaria is urging the government to limit and better specify parties entitled to subsidized fuel. According to Mr. Zakaria, motorcycles and public transportation should still have the benefit of subsidized fuel, but not owners of privately-owned four-wheeled vehicles.
To ensure proper enforcement, Mr. Zakaria suggests the government immediately set out such limitations in a ministerial regulation, such as the Minister of Energy and Natural Resources Regulation No. 1 of 2013 on Fuel Utilization Control, which limits the use of subsidized fuel for vehicles in mining and plantation industries.
Sharing Mr. Zakaria’s opinion, Sudirman Said, the Minister of Energy and Natural Resources, is aware of his responsibility to ensure that subsidized fuel is only utilized by entitled parties. However, the Minister admits that to do so is difficult as is keeping an eye on who uses what fuel.
Consequently, the Minister is seeking the support of the Indonesian people to help him better manage the oil and gas sector under better self-awareness and the non-use of subsidized fuel by parties they are not entitled to do so.
“The haves should not use subsidized fuel,” the Minister asserted.
SKK Migas Destiny
Other than ensuring a well-targeted allocation of subsidized fuel, the Ministealr’s addition homework includes finalizing the revision to the Oil and Gas Law. One urgent issue is to determine the status of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), which is currently the supervisor of the upstream oil and gas upstream.
Luluk Sumiarso, former Director General of Oil and Gas at the Ministry of Energy and Natural Resources, is suggesting two options. The first one is to establish SKK Migas as a state-owned enterprise (badan usaha milik negara – BUMN). Under this approach, Mr. Sumiarso said that SKK Migas must have operate under its own mechanisms which differ from other BUMNs, although he did not elaborate further.
As a second option, Mr. Sumiarso sees a possibility for SKK Migas to be established as an entity like the Financial Services Authority (OJK). Under this approach, SKK Migas will have full authority to supervise upstream oil and gas industries, although this means that the government must also establish a specific supervising authority for the downstream oil and gas industry.
Responding to these issues, Johanes Widjonarko, Head of SKK Migas, admits that SKK Migas does not have the capacity to determine their own status in the future. However, SKK Migas will still contribute their views derived from its experiences.
Furthermore, Mr. Widjanarko stated that SKK Migas will follow the government’s instructions as he believes that any measures taken by the government must be based on a comprehensive consideration of all relevant factors. Above all, Mr. Widjanarko wants to see better management of the oil and gas sector.
(hot/kc)