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very strategic decision in the oil, gas, energy and mining sectors, including contract renegotiations with several mining giants such as PT Freeport Indonesia, will require a second opinion from audit and corruption watchdogs, a minister has said.

Energy and Mineral Resources Minister Jero Wacik said the new mechanism had been implemented at his the ministry, which had recently been shaken by a major corruption case involving its senior officials.

'€œIf we are not certain about our decision, either in SKKMigas [the Upstream Oil And Gas Regulatory Special Task Force], the oil and gas directorate or the mineral and coal directorate, there will be a process of consultation with the BPKP [Development Finance Comptroller],'€ he said.

'€œIf the project is strategic, the consultation must also involve the KPK [the Corruption Eradication Commission],'€ he said late on Tuesday.

The ministry has been under the spotlight following the unveiling of several major corruption cases. Former SKKMigas chief Rudi Rubiandini was recently sentenced to seven years in prison after being found guilty of accepting bribes from energy companies.

Earlier this week, the KPK grilled Jero as witness in a corruption case concerning allocated gas prices in SKKMigas.

The KPK also previously named the ministry'€™s former secretary-general, Waryono Karno, for allegedly rigging a number of state projects.

The cases are said to have halted the granting of permits of various big projects in the energy and mineral sector, as officials are more careful about making strategic decisions.

A number of large projects are awaiting the government'€™s decision, including a billion dollar gas project called Indonesia Deepwater Development (IDD) from the Indonesian unit of US-based Chevron, as well as the extension of production sharing contracts (PSCs) of several major oil blocks.

SKKMigas acting chief Johannes Widjonarko admitted his office was seeking an opinion from the comptroller regarding a sizeable investment proposed for the IDD project.

In addition to the oil and gas sector, the contracts of the country'€™s mining companies including Freeport, Vale Indonesia and Newmont, are also under renegotiation as part of adjusting to the new Mining Law.

The renegotiations are important as they will determine whether the government extends their contracts.

Freeport is seeking the government'€™s guarantee for an early extension of its contract that will expire in 2021. The ministry'€™s director general for mineral and coal, R. Sukhyar, insisted that under the existing law, the contract should be extended two years before its expiry, although the company has made good progress in its contract renegotiations with the government.

However, newly appointed Coordinating Economic Minister Chairul Tanjung has said that the government would sign memorandums of understanding (MoUs) with mining giants including Freeport on the results of contract renegotiations before the government'€™s term ends in October.

The plan raises pros and cons as the government plans to include a clause providing a contract extension guarantee to be legally tied to the incoming government.

'€œPrincipally a study should be conducted before making a decision on any projects in that particular sector,'€ KPK deputy chairman Zulkarnain said.

In relation to the Freeport contract, he said his office had not yet carried any specific study.

The KPK has been involved in several oil and gas projects. The planned construction of BP Indonesia'€™s third Tangguh liquefied natural gas (LNG) train in Papua has been temporarily suspended at the request of the KPK.

According to the ministry, the KPK halted the project because its funding plan was at risk of violating the existing Oil and Gas Law.