awmakers will likely miss the deadline for the revision of the 2001 Oil and Gas Law this year, as political parties are still divided over a number of contentious regulations, including those regarding the status of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
Gerindra Party lawmaker Harry Poernomo said on Wednesday that the 10 political factions in the House of Representatives all had different views on whether SKKMigas should be transformed into a special state enterprise or be merged as a part of state-owned oil and gas giant Pertamina.
“Tough discussions are also still ongoing regarding the ideal institutional structure of the oil and gas company. Apart from [state-owned distributor] Perusahaan Gas Negara (PGN) and Pertamina, we also have SKKMigas. They have intersecting roles,” Harry, who is also a member of House’s Commission VII overseeing energy, said in a discussion.
(Read also: Luhut pledges to go full speed on law revision)
NasDem Party lawmaker and Commission VII member Kurtubi, meanwhile, said his party was in the view of handing over the management of the oil and gas sector to Pertamina. He argued that the scheme was in line with the Constitution that stipulates state control on earth, water and natural resources for the optimal welfare of the people.
“Currently, the House agreed that there should be a specialized business entity authorized for oil and gas operations, in which NasDem and Gerindra Party want it to be Pertamina. However, other factions disagree,” he said.
Other factions, he explained, do not want to give too much power to Pertamina because they fear of the potential for abuse of power.
Despite being included as one of the priority bills for this year’s national legislation priority program (Prolegnas), the revision draft for the law is still being discussed internally by lawmakers. A failure to wrap up the revision by year-end would require lawmakers to secure a spot for the revision in next year’s Prolegnas, otherwise risking more delays. (win/hwa)
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.