TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
New oil and gas bill to replace SKK Migas with dual function BUK Migas
The House is deliberating a new bill that has been decades in the making to replace the oil and gas regulatory body SKK Migas with a dual function regulatory and business entity called BUK Migas.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The sun sets behind an offshore oil and gas rig operated by Saka Energi Muriah Limited in the Kepodang Field of the Muriah Block, off the coast of Jepara, Central Java, in this undated handout photo from SKK Migas. (SKK Migas/SKK Migas.)
T
he House of Representatives has resurrected a long-awaited amendment to the decades-old 2001 Oil and Gas Law, which includes a major change to alter the function of the industry regulator, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).
Article 44 of the new bill replaces SKK Migas with the Special Oil and Gas Business Entity (BUK Migas), according to a draft seen by The Jakarta Post in early September.
The article also allows the new body to own a participating interest in oil and gas blocks and to sell oil and gas products as part of its production sharing contract (PSC), an arrangement that is not possible under the current law.
Maman Abdurrahman, deputy chair of House Commission VII overseeing energy and mineral resources who led the deliberation of the draft bill, did not immediately respond to a request for comment.
Earlier on Sept. 20, House Commission VII lawmaker Mulyanto said BUK Migas would be more than just a regulator, and would also be a “doer”.
“The authority of doing business will be carried out through a cooperation contract (KK), making investments as well as managing oil and gas funds,” Mulyanto said during an interview with CNBC Indonesia.
This also covered selling oil and gas products, including exports, he added.
