Petroleum Association Praises Govt’s Quick Move on Regulator
Tito Summa Siahaan
The Indonesian Petroleum Association, a group of oil and gas firms, was appreciative of the government’s quick response after the country’s previous oil and gas regulator, BPMigas, was dissolved by the Constitutional Court last month.
Days after the court ruling, President Susilo Bambang Yudhyono enacted a decree to establish a temporary regulator, called SKSPMigas, which was put under the direct watch of energy and mineral resources minister, Jero Wacik.
Soon afterwards, on Dec. 13, the association issued a statement saying that it was “satisfied” with SKSPMigas.
Last week, Lukman Mahfoedz, the president director of Medco Energi Internasional, reiterated to the Jakarta Globe that the association was content but would still urge the government to establish a permanent oil and gas regulator.
“We are grateful that the BPMigas dissolution was responded to positively by the government with the formation of SKSPMigas,” Lukman said.
“We are hoping for the permanent status of the regulator to remain under the Energy and Mineral Resources Ministry, under a united management control unlike the [now-defunct] BPMigas.”
Lukman, the incoming chairman of the Indonesian Petroleum Association, also revealed that the minister has given his stamp of approval for work programs and budgets for all oil and gas firms for 2013.
According to Lukman, the association delivered its wishes to the minister for work programs and budgets to be approved before year-end. Typically, they consist of production targets and the amounts of cost recovery.
Previously, Lukman claimed, approval from the now-defunct BPMigas took a prohibitively long time.
“We are appreciative of [this] achievement by SKSPMigas, therefore we can look into the new fiscal year with full confidence,” he added.
Lukman also reminded the government once again to take into consideration input from industry players in the ongoing revision of the oil and gas law, several articles of which were annulled by the Constitutional Court in the November ruling.
“The principles of clarity, consistency and certainty must be upheld,” Lukman said.