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Jakarta Post

Break up of BPMigas adds to legal uncertainty

  • Amahl S. Azwar

    The Jakarta Post

Jakarta   /   Wed, November 14 2012   /  10:17 am

The Constitutional Court ruled on Tuesday to disband the upstream oil and gas regulator BPMigas, adding further legal uncertainties to the country’s oil and gas sector.

The court’s chief justice, Mahfud MD, said the ruling was made in line with the request filed by 42 organizations including Muhammadiyah — Indonesia’s second largest Muslim groups — and several scholars to review the 2001 law on oil and gas .

 “As of today [Tuesday], the rights and authority of BPMigas over production sharing contracts [PSCs] will be taken over by the government, in this case, the Energy and Mineral Resources Ministry, until there is a new law that can be used as a foundation of the supervisory body,” the chief justice said in his ruling.

“All of the existing oil and gas contracts will be unaffected until they expire.”

Mahfud said that BPMigas had been d...