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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsRevamped oil, gas regulator to enhance oversight, ex-SKK Migas head says
A former SKK Migas has suggested that establishing the dual-function entity dubbed BUK Migas will enhance, not replace, the role of the oil and gas regulatory body and help grow Danantara, though lawmakers have said the new entity is intended as a replacement.
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!
A column of flame shoots from a flare stack on the Oyong wellhead platform in the Sampang Block, located off the East Java coast in the Madura Strait, in this undated photo. (SKK Migas/SKK Migas)
T
he proposal to establish a dual-function Special Oil and Gas Business Entity (BUK Migas) could enhance the role of the Upstream Oil and Gas Regulatory Task Force (SKK Migas) in overseeing exploration and production activities, according to Dwi Soetjipto, a former head of the industry regulatory body.
Ideally, the new entity should be placed under the State-Owned Enterprises (SOEs) Ministry or Danantara, he told the inaugural dialogue in Jakarta organized by his Dwi Soetjipto Research Center (DSRC), expressing hope that this arrangement would ensure its direct contribution to the state asset fund’s growth.
“With the BUK, assets will flow into Danantara, accelerating its development,” Dwi said during the discussion on Wednesday, as quoted by Bisnis.com.
“The BUK will strengthen SKK Migas’ role, not eliminate it,” he added, underlining that the entity’s establishment should be seen as part of a broader restructuring to reinforce the regulatory body’s authority.
According to Dwi, BUK Migas would represent the state in upstream agreements with cooperation contractors (KKKS) and must therefore be independent to earn their trust.
The proposal to form BUK Migas stems from a 2012 Constitutional Court ruling on a judicial review of the 2001 Oil and Gas Law.
Read also: New oil and gas bill to replace SKK Migas with dual function BUK Migas
