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Jakarta Post

Masela PoD signing delayed, pending for KPK scrutiny

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, July 1, 2019   /   03:46 pm
Masela PoD signing delayed, pending for KPK scrutiny Masela oil and gas block (Courtesy of/maritim.go.id)

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) initially planned to sign a revised plan of development (PoD) for Abadi field in Maseka Block in June, but the signing was delayed to allow the Corruption Eradication Commission (KPK) to review the agreement.

The deal between SKK Migas and Japan’s Inpex would have been witnessed by President Joko “Jokowi” Widodo and Japanese Prime Minister Shinzo Abe in Tokyo on Friday on the sidelines of G20 Summit.

Inpex media relations Moch Kurniawan confirmed that there was no deal between the government and Inpex in a revised PoD submitted by the latter.

Previously, Energy and Mineral Resources Minister Ignasius Jonan said the ministry had allowed the KPK to analyze the PoD and assure that the agreement would be based on proper considerations.

KPK prevention deputy Pahala Nainggolan said on Wednesday that SKK Migas had held an initial expose of the document before there KPK and there would be another expose before KPK commissioners.

Reforminer Institute founder Pri Agung Rakhmanto said based on prevailing regulations, SKK Migas had the authority to decide on the issue and he appreciated the involvement of the KPK in the Masela agreement.

“But the decision was still on the hands of KPK,” he said as quoted by kontan.co.id.     

Meanwhile, an economist with the Yogyakarta Gadjah Mada University, Fahmy Radhi, said the KPK’s involvement was not expected to delay the deal further because it could increase investment and operational costs. (bbn)