Metrotvnews.com, Jakarta: Discussion of Draft Law Number 22 Year 2001 regarding Oil and Gas has not yet been completed. In fact, the Oil and Gas Bill continues to be included in the list of the National Legislation Program (Proglegnas) for six consecutive years. According to PWYP, this has become the root of industrial problems in the oil and gas sector.

The Chairperson of Publish What You Pay Indonesia (PWYP) Steering Board, Fabby Tumiwa, urged the House of Representatives (DPR) Commission VII to immediately discuss the bill. Immediately discussed and finalized this Oil and Gas Bill, the problem of the oil and gas sector will have a strong legal umbrella. During this time, there are many gaps that make the oil and gas bill become the root of the problem of the oil and gas sector itself.

“The root of various problems in the oil and gas sector is the legal umbrella that has many gaps, both in terms of planning, management, coaching, and supervision,” Fabby said in a discussion in the Cikini area, Central Jakarta, Sunday (05/29/2016).

Fabby explained the completion of the Oil and Gas Bill will solve several key issues that are at the root of the problem. Issues such as oil and gas management planning, upstream oil and gas institutional models that allow for checks and balances, regulatory bodies, and managing SOEs.

Then also related to petroleum funds, Domestic Market Obligation (DMO), reserve funds, cost recovery, participating interests, protection of the impact of oil and gas record activities, as well as reform of information and participation systems.

In addition, with the cancellation of the Oil and Gas Bill continuing each year, Fabby said it would have a negative impact on investors. Investors will be uncertain because there is no legal certainty. Since 2011 Indonesian oil and gas production tends to decrease. That was due to one of them due to the incompleteness of the Oil and Gas Bill.

“Canceling the continued discussion of the Oil and Gas Draft Bill creates legal and regulatory uncertainty for investors, especially in the upstream sector, such as oil and gas well exploration,” he said.

Source: here.