The Oil and Gas Bill's Narrow Window
Oil and gas investment requires legal certainty. The Oil and Gas Bill's clauses disregard accountability and integrity.
The Oil and Gas Bill's narrow window of opportunity presents a concerning case of sacrificing accountability and integrity for the sake of legal certainty. Revisions to the Oil and Gas Law have been proposed since 2015, but have never been enacted, largely due to concerns over BP Migas' lack of accountability and integrity. The constitutional court ruled that BP Migas' existence infringed on the state's direct control over oil and gas management contracts, resulting in the creation of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) in 2012.
Despite this, SKK Migas' authority remains vulnerable and subject to presidential whims. Crucially, the Oil and Gas Bill contains provisions that could deter investors, such as the establishment of a Special Oil and Gas Business Entity (BUK) under presidential control, reminiscent of Pertamina's corrupt past. With sluggish oil and gas production and a lack of legal certainty, Indonesia risks falling behind regional and global competitors, hindering economic growth.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
