TEMPO.CO, Jakarta- Publish What You Pay (PWYP) Indonesia urges the House of Representatives Commission VII to immediately discuss the revision of the Oil and Gas Law. Civil society coalition for transparency and accountability in governance of oil and gas extractive resources, mining and natural resources is hoping that the DPR has made a draft revision before the trial period ends.

“The discussion on the Oil and Gas Bill is a concern that should not be postponed anymore,” said PWYP Indonesia’s National Coordinator, Maryati Abdullah, in Bakoel Koffie, Jakarta, Monday, November 21, 2016. The revision of the Oil and Gas Law was included in the DPR Prolegnas list since 2010.

Maryati said that Indonesia was threatened with an energy crisis by 2025. Indonesia was predicted to need as much as 7.4 million barrels of oil equivalent oil per day. As many as 47 percent of energy sources come from oil and gas and energy consumption reaches 1.4 tons of oil equivalent per day.

Based on SKK Migas data, Indonesia’s oil production is only 250 thousand barrels per day with 86 percent of the total national oil production coming from old oil and gas fields. “The current reserves are not able to meet the needs,” said Maryati.

He said the oil and gas sector was also faced with threats from the mafia. The Corruption Eradication Commission (KPK) found a potential loss of the state of US $ 336.1 million or equivalent to Rp 4.4 trillion due to unfulfilled financial obligations by the Oil and Gas Contractor (KKKS) Contractor for Work Areas that have already been terminated.

The KPK also found that 143 out of 319 Work Areas in the upstream oil and gas sector had not paid off financial obligations. While as many as 141 Work Areas do not carry out Environmental Based Assessment-EBA obligations.

According to Maryati, the root of various problems in the oil and gas sector is the legal umbrella that still has many gaps. PWYP Indonesia identified a number of key issues that should be included in the discussion of the Oil and Gas Bill. The discussion is the planning of oil and gas management, an upstream oil and gas institutional model that allows the process of checks and balaces.

In addition, the regulatory body, managing SOEs, Petroleum Fund, Domestic Market Obligation, reserve funds, Cost Recovery, Participating Interest, protection from the impact of oil and gas activities, and reform of information and participation systems.

Maryati said the mobility space must be closed by reforming the information system and participation that ensures the fulfillment of the right to public information. “Transparency of KKKS contract openness, DBH calculation, lifting data, sales data and AMDAL documents must be opened,” he said. In addition, the draft oil and gas bill must provide a guarantee of space for participation to be involved in every stage of oil and gas sector management in Indonesia, which is barely met.


Tempo.co |In Media , Media Coverage, Escort the oil and gas bill  | Rizky Ananda Wulan Sapta Rini | November 25th, 2016