2016 marks 12 years after the issuance of the decision of Constitutional Court No. 002/PUU-I/2003 which annuls several articles of Law Number 21 Year 2001 concerning Oil and Gas and 4 years after the issuance of the decision of Constitutional Court No. 36/PUU-X/2012 which dismisses Executive Agency for Upstream Oil and Gas (BP Migas). But till today, the discussion of Oil and Gas Law revision has yet to reach an agreement. Although it has been included in the 2016 National Legislation Program (Prolegnas), there is no guarantee that the law revision will be finished this year.
“2001 Oil and Gas Law is not relevant to implement. 3 judicial reviews has been conducted on this law. Many articles has been annulled by Constitutional Court. It’s impacted to the law uncertainty which shall be faced by the company. In fact, law certainty will boost investment in the oil and gas sector which can ensure production and supply of oil and gas. Current import policy will only threaten Indonesia energy security,” explained Fabby Tumiwa, Executive Director of IESR in the press conference of PWYP Indonesia Coalition to urge parliament to immediately discuss Oil and Gas Law revision in Jakarta, last 29 May.
In line with Fabby, Aryanto Nugroho, Advocacy Manager of PWYP Indonesia, also underlined the importance of law certainty in the framework of oil and gas governance improvement. Some has attempted to improve oil and gas governance. KPK is currently conducting Coordination and Supervision in the oil and gas sector. Team of TRTKM has revealed the potency of corruption and the room of mafia in the sector. It won’t be optimum without the presence of law certainty. Therefore, the coalition urge parliament to discuss Oil and Gas Law revision immediately.
“Unfortunately, the urgency to finish the revision is not accompanied with the commitment of parliament. The law revision agenda is not included in the May agenda. The discussion is expected to get delayed because they have yet have common ground in the critical issues of this revision. Many problems in the oil and gas governance require systemic solution,” added Aryanto.
Hanafi, Executive Director of IPC, questioned the commitment and effort of parliament in the Oil and Gas Law revision agenda. “No effort of parliament to immediately finish the law revision. They just put it as an ornament in each Prolegnas. The slow progress is presumably due to the existence of interest, considering oil and gas is strategic sector which has been a “home” of rent-seeker.”