T

he upstream oil and gas sector has welcomed fresh blood in key posts at the Energy and Mineral Resources Ministry and the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).

Energy and Mineral Resources Minister Sudirman Said announced late on Tuesday that IGN Wiratmaja, currently acting director general at the ministry'€™s oil and gas office, would be appointed permanently as director general. The appointment comes following open selections for five top posts at the ministry held since late last year.

Sudirman declined to divulge those chosen to fill the four other positions, saying that a formal announcement would be made at an inauguration ceremony this Thursday.

In another shake-up, SKKMigas has a new lineup of deputies. SKKMigas chief Amien Sunaryadi, who was appointed to lead the regulatory agency last November and has promised to put the task force in order, build a better system and improve financial management, enacted no major changes in the deputy structure but proposed mostly new names to lead.

SKKMigas will go forward with Zikrullah '€” formerly a business support deputy '€” as deputy chief. Meanwhile, Muliawan will maintain his position as deputy for operation control, Gunawan is the new deputy for planning control, Ruliyan the new deputy for finance control, Rudianto Rimbono '€” formerly SKKMigas spokesman '€” the new deputy for business support and Budi Agustiono '€” formerly deputy for finance control '€” the task force'€™s secretary.

The president director of Jakarta-listed oil and gas firm PT Medco Energi Internasional, Lukman Mahfoedz, who is also a director of the Indonesian Petroleum Association (IPA), said he expected that the overhaul would provide further clarity within the industry.

'€œIf things are already in line with the prevailing regulations, we hope that there is no more hesitation in decision-making and that everything can be performed more quickly, more simply and more transparently to create a more favorable oil and gas business climate,'€ Lukman said.

Indonesia, a former member of the Organization of Petroleum Exporting Countries (OPEC), has been struggling with declining oil output despite rising demand. Moves to encourage oil and gas activities are often hampered by unfriendly regulations and red tape.

A former energy and mineral resources minister, Jero Wacik, was recently named a suspect in an extortion case by the Corruption Eradication Commission (KPK). Previously, Jakarta Corruption Court judges sentenced former SKKMigas chief Rudi Rubiandini to seven years in prison after finding him guilty of accepting bribes from various parties.

In a fresh case, the National Police raided on Tuesday the offices of PT Trans Pacific Petrochemical Indotama (TPPI) and SKKMigas in Central Jakarta in an alleged money-laundering case.

On Wednesday, state-owned oil and gas giant Pertamina also announced a new board of commissioners'€™ line up. Former state-owned enterprises minister Tanri Abeng was appointed new president commissioner, replacing Sugihartono, who had served for five years. Accompanying Tanri are Sahala Lumban Gaol, Suahasil Nazara and Widhyawan Prawiraatmadja.