Member Of Commission VII DPR Explains Reasons For SKK Migas Disbanded

JAKARTA - Member of Commission VII of Indonesian House of Representatives (DPR RI), Mulyanto explained the reasons for disbanding the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) if the government had formalized the revision of Law No. 22 of 2001 concerning Oil and Gas (UU Migas).

After being disbanded, there will be a Special Oil and Gas Business Entity (BUK) which will replace SKK Migas.

"Yes, that's the draft. So, there will be a special oil and gas agency in accordance with the functions mandated by the Constitutional Court. If there is a new agency that is complete in accordance with the Constitutional Court's mandate, if it is knocked, the government will automatically disband the temporary agency. That's just a logical consequence," said Mulyanto quoted on Wednesday, September 20.

He explained that the Oil and Gas Bill was an initiative from the DPR RI and was in accordance with the mandate of the Constitutional Court (MK) which carries out the Judicial Review (JR) function of the Oil and Gas Law which requires the Oil and Gas Implementing Agency to have a regulatory function.

After BP Migas was disbanded and replaced with SKK Migas, he said, the Oil and Gas Law was also revised again according to the institutions expected by the Constitutional Court.

For your information, SKK Migas was formed because the Constitutional Court dissolved the Upstream Oil and Gas Business Activities Implementing Agency (BP Migas) in 2012.

Furthermore, the Constitutional Court mandated that the government form a new business entity that carries out both policy and business functions.

Mulyanto added that the revision of the Oil and Gas Law had completed the harmonization process in the Legislative Body.

"Yesterday's Baleg was completed harmonizing, now the ball is waiting to be brought to the Plenary. When it is finished we will send it to the President, the President will make the Surpres and DIM and within 60 days the President will send it to the DPR to then form the Oil and Gas Bill Working Committee," continued Mulyanto.

Furthermore, he added, in the future BUK which will replace SKK Migas will have regulatory, policy and corporate functions.

"BUK Migas is more certain because there is a law that is more permanent than SKK Migas which is still temporary," added Mulyanto.

He added, if BUK Migas has business powers, then it has the authority to conduct business through work contracts, good work contracts with business entities.

"BUK carries out investments, manages oil and gas funds including profit sharing, oil and gas exports are also managed by BUK Migas, so it is extensive. So what is in SKK Migas now is being supplemented by other businesses so that it becomes broader and more certain," explained Mulyanto.