Discussions regarding the revision of the Oil and Gas Bill (UU Migas)\nremain difficult. One of the key issues under consideration is the plan\nto establish a Special Business Entity (BUK) for oil and gas.<\/p>\n
The debate involves the form and position of the BUK Migas within the\ngovernment\u2019s institutional structure. Several options have emerged,\nincluding placing the BUP Migas directly under the President, under PT\nPertamina (Persero), or under the Ministry of Energy and Mineral\nResources (ESDM).<\/p>\n
Komaidi Notonegoro, Executive Director of the ReforMiner Institute,\nnoted that based on the circulating draft of the Bill, the BUK Migas is\ndesigned as a special business entity or a special State-Owned\nEnterprise (SOE) primarily tasked with managing upstream oil and gas\nactivities.<\/p>\n
\u201cIn the existing draft, BUK Migas is a special business entity or a\nspecial SOE that manages the upstream sector,\u201d Komaidi told CNBC\nIndonesia.<\/p>\n
According to Komaidi, the concept of BUK Migas shares similarities\nwith previous institutions used in upstream oil and gas management.\nBefore the formation of BP Migas and subsequently SKK Migas, these\nfunctions were part of Pertamina\u2019s structure.<\/p>\n
\u201cIts position might be similar to when there was a BBPKA within a\nPertamina unit or directorate, which later reincarnated as BP Migas\nunder Law 2\/2001, and after being annulled by the Constitutional Court,\nbecame SKK Migas. Thus, its task is specifically to handle the upstream\nsector, namely exploration and production,\u201d he said.<\/p>\n
Furthermore, the BUK Migas concept bears some resemblance to\nDanantara, particularly in terms of management functions. However, the\nscope of BUK Migas will be much more specific, focusing on the upstream\noil and gas sector.<\/p>\n
\u201cIs it similar to Danantara? Danantara is actually higher up, acting\nas an overall conductor. There might be some similarities with Danantara\nInvestasi, but specifically for the upstream oil and gas sector, where\nit will work with partner contractors and can operate independently,\u201d he\nadded.<\/p>\n
Meanwhile, oil and gas practitioner Hadi Ismoyo believes the new BUK\nMigas should possess stronger authority than previous upstream\nmanagement institutions.<\/p>\n
\u201cThe new BUK will be more powerful than its predecessors,\u201d he\nsaid.<\/p>\n
Hadi noted that he had proposed this idea during an interview process\nin 202\/3. He believes that if necessary, BUK Migas could be granted the\nauthority to handle both the upstream and downstream sectors\nsimultaneously.<\/p>\n
\u201cIf required, it could handle both upstream and downstream at once,\nand the new BUK Chairman would be responsible to the President with a\ndotted line to the relevant Ministry,\u201d he stated.<\/p>\n
He argued that such an institutional design is necessary to\nstrengthen the position of BUK Migas and support the broader goal of\nstrengthening national energy security.<\/p>\n
At the very least, the individuals selected to lead the BUK Migas\norganisation must be competent and neutral. This is crucial to prevent\nconflicts of interest in the execution of the institution\u2019s\nfunctions.<\/p>\n
\u201cThe goal is to strengthen national energy security. The organisation\nmust be composed of professional and neutral individuals; the referee\nmust not also be a player, so that the BUK becomes a professional,\nworld-class entity,\u201d he said.<\/p>\n
Previously, Member of Commission XII of the Indonesian House of\nRepresentatives (DPR RI), Ratna Juwita Sari, stated that her party is\nawaiting the government\u2019s official stance through the Government\nExplanation Note (DIM) before determining a further view on the BUK\nMigas design.<\/p>\n
\u201cAs for us, we have observed that the special business entity for oil\nand gas should be managed professionally. Currently, the business entity\nalready exists, so there is no need for another regulator,\u201d she said\nwhen met at the DPR RI building on Tuesday.<\/p>\n
She noted that BUK Migas would act on behalf of the state in managing\nthe oil and gas sector. Therefore, she chose to wait for the\ngovernment\u2019s DIM before taking a definitive stance on the form and\nposition of the institution.<\/p>\n
When asked whether BUK Migas should fall under the Ministry of ESDM,\nPertamina, or directly under the President, Ratna declined to comment\nfurther.<\/p>\n
\u201cAhahaha, no comment, no comment. I\u2019m afraid of being wrong,\u201d Ratna\nsaid with a laugh.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/difficult-discussions-over-oil-and-gas-bill-experts-offer-advice-1789023404", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }