With large reserves of natural resources, Indonesia’s continued dependency on energy such as oil and gas for the time being is inevitable. This is also supported by the large revenue derived from the oil and gas industries, both tax and non-tax revenue. Despite these circumstances, there is a general consensus that the current management framework of the oil and gas sector is far from perfect.
Din Syamsuddin, General Chairman of Central Management of Muhammadiyah, reently expressed his concerns, one of which is in regard to the oil and gas mafia within the Special Unit for Upstream Oil and Gas Activities (“SKK Migas”).
Mr. Syamsuddin witnessed how corruption dragged down SKK Migas, exactly like its predecessor, the Agency for Upstream Oil and Gas Activities (“BP Migas”). He believes that President Yudhoyono merely changed the name from BP Migas to SKK Migas in 2012..
In order to keep out oil and gas mafia, and ensure adherence to the 1945 Constitution, Mr. Syamsudidn has said that his organization will continue its “constitutional jihad”.
Similar criticism is also coming from lawmaker Kurtubi (Commission VII). He deplores the current management of the oil and gas sector which has caused financial losses to the state, because upstream and downstream activities have been performed by two different parties. According to him, it does not make sense if the government conducts upstream activities, while downstream activities are managed by a different party.
Mr. Kurtubi asserts that upstream and downstream activities should be performed by a single state-owned enterprise, Pertamina. He is against the approach of delegating the management of oil and gas procedures to SKK Migas, saying these processes must be delegated to state-owned enterprises instead of government agencies.
Mr. Kurtubi believes that Pertamina’s duties should cover all potential aspects of oil and gas management in Indonesia. Accordingly, Mr. Kurtubi is suggesting that the regulation of oil and gas management should not be separated, and instead must be managed by an integrated oil company.
According to him, it would be foolish if the management of oil and gas was transferred to foreign or third parties. Mr. Kurtubi said that such an approach would contributes nothing to state revenue.
With large reserves of natural resources, Indonesia’s continued dependency on energy such as oil and gas for the time being is inevitable. This is also supported by the large revenue derived from the oil and gas industries, both tax and non-tax revenue. Despite these circumstances, there is a general consensus that the current management framework of the oil and gas sector is far from perfect.
Din Syamsuddin, General Chairman of Central Management of Muhammadiyah, reently expressed his concerns, one of which is in regard to the oil and gas mafia within the Special Unit for Upstream Oil and Gas Activities (“SKK Migas”).
Mr. Syamsuddin witnessed how corruption dragged down SKK Migas, exactly like its predecessor, the Agency for Upstream Oil and Gas Activities (“BP Migas”). He believes that President Yudhoyono merely changed the name from BP Migas to SKK Migas in 2012..
In order to keep out oil and gas mafia, and ensure adherence to the 1945 Constitution, Mr. Syamsudidn has said that his organization will continue its “constitutional jihad”.
Similar criticism is also coming from lawmaker Kurtubi (Commission VII). He deplores the current management of the oil and gas sector which has caused financial losses to the state, because upstream and downstream activities have been performed by two different parties. According to him, it does not make sense if the government conducts upstream activities, while downstream activities are managed by a different party.
Mr. Kurtubi asserts that upstream and downstream activities should be performed by a single state-owned enterprise, Pertamina. He is against the approach of delegating the management of oil and gas procedures to SKK Migas, saying these processes must be delegated to state-owned enterprises instead of government agencies.
Mr. Kurtubi believes that Pertamina’s duties should cover all potential aspects of oil and gas management in Indonesia. Accordingly, Mr. Kurtubi is suggesting that the regulation of oil and gas management should not be separated, and instead must be managed by an integrated oil company.
According to him, it would be foolish if the management of oil and gas was transferred to foreign or third parties. Mr. Kurtubi said that such an approach would contributes nothing to state revenue.