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em>The administration of President Joko '€œJokowi'€ Widodo is expected to provide new policies on how to end the protracted uncertainty plaguing the oil and gas as well as the mining sectors. The Jakarta Post'€™s Raras Cahyafitri and Rendi A. Witular recently talked to newly appointed Energy and Mineral Resources Minister Sudirman Said about his vision for the sector. Following are excerpts of the interview:

Question: Regarding the Upstream Oil and Gas Regulatory Task Force [SKK Migas], what will the regulator become in the future? [SKK Migas was formed as a temporary body to replace BPMigas, which was dissolved through a Constitutional Court ruling]

Answer: According to the Constitutional Court ruling, the regulating body could operate but not under the same name and without several hierarchy items. Moreover, we are still waiting for the new oil and gas law to be endorsed. There have been many ideas and a lot of discussion, but I cannot conclude what it will be like.

But I think that what we need to lay out is the governance. At the moment I would say that it [SKK Migas] is ambiguous because it is unclear whether it is a government body or a business enterprise.

From its operation, it is a business enterprise but it lacks the structure of a business enterprise, such as boards of directors and commissioners. Its financial management is also a concern.

Whatever the form, we have to decide on it soon. I cannot tell now what it will be like because I have to talk to other stakeholders and the Finance Ministry as well as consult with the President. If it is to be a business enterprise, it should be a state-owned enterprise. Some options remain under consideration.

What are the options?

Like I said, if it is to be a business enterprise we have to decide whether it will be perseroan [state-owned limited liability company], perusahaan umum [general enterprise] or special enterprise. Those are things we have to assess thoroughly.

While waiting for the SKK Migas status settlement, how will you give legal certainty to oil and gas players, particularly on licenses and contracts?

In my view, it has no direct relation to the form of SKK Migas. However, yes legal certainty and contract extension issues are part of my work. Of course, the issues are with SKK Migas'€™ authority. However, as the head of SKK Migas'€™ supervisory committee, I have to ensure that the agency is up to the job.

I am planning to have regular meetings to supervise and accelerate various matters to settle pending matters. I have decided to form a task force, which will act as a clearing house to observe all pending matters.

In regards to the mining sector, are you going to review the recently signed memorandums of understanding [MoUs] between the previous government and several giant miners, such as Freeport and Newmont, regarding their contract amendments?

Contracts of work usually cover the period of mining operation and areas. There are requirements that must be met by the companies and the obligation to build smelters. We have to ensure in the review that all items related to the development of national capacity are accommodated. I have faith that no matter how difficult the requirements, business players will comply as long as we provide them
with certainty.

Regarding existing contracts, we will see whether they accommodate domestic and public interests. We also have to maintain the balance with environmental conservation.

There are currently several legal cases in the energy and mining sector, particularly the bioremediation case involving Chevron and the arbitration case filed by Churchill Mining. How will you handle them?

I was briefed in detail regarding the chronology of the Chevron case. The dilemma is when something enters the legal realm, we cannot intervene because we have to respect the judges and the prosecutors. What I will do is mediate. I want to meet the forestry minister to explain the situation. Part of the matter [Chevron'€™s bioremediation case], according to our colleagues in SKK Migas, stems from a personal grudge that has been extended and resulted in a legal case.

The most important thing is how to make sure that this kind of case does not recur. For example waste disposal, we don'€™t have to go as far as Cilegon [in Banten] or Padang [in West Sumatra] to dispose of it. Building a waste disposal facility is something that can be settled with the local administration. When the time comes, I will go there and give special attention to the issue.

Chevron employees impacted by the case are currently a seeking review. How will you mediate?

Both parties will fight until the end, and we cannot intervene in that. However, we can talk to both parties and ask them how much longer they want it to be like this. Chevron employees were only carrying out their duties. At least there is a gesture that the government is not ignoring this problem. Regarding the Churchill case, I haven'€™t been updated yet.

What about the stalled Batang coal-fired power plant project? [The project is the biggest plant development in Southeast Asia, but has been hampered by land acquisition issues.]

The issue is about land acquisition and some matters with local administrations. I haven'€™t been informed of how far Pak Chairul Tanjung [former acting energy and mineral resources minister] has handled it. I'€™d like to go to Batang [in Central Java] and meet Mas Ganjar [Central Java Governor Ganjar Pranowo] to understand the details of the problems encountered in the field. The project has been stalled for a quite long time.

You plan to reshuffle top officials of the Energy and Mineral Resources Ministry. How wide-ranging will it be?

The most effective way to change an organization is to initiate change from the top. It doesn'€™t mean that all officials on the top ladder will be replaced. However, the changes in top officials will surely affect the lower ranks. So, if I am asked how encompassing the changes will be, it will depend on the person whom I appoint to fill the top job. The new officials will then make the necessary replacements in his or her divisions.