Why The Law on Oil and Gas Must be Revised?

The Law on Oil and Gas, No. 22 of 2001 should be revised thoroughly. If necessary, it is repealed by PERPPU, and the gas management system is returned as mandated by Article 33 of 1945 Constitution (UUD 1945) so that the national oil and gas industries become more efficient in order to accelerate the achievement of public welfare. This was raised in the public hearing (RDPU) between Committee II DPD RI with oil and gas experts, Dr. Kurtubi and Ir. Sulaiman Zuhdi that discussed the Bill on Oil and Gas, on Monday (14 / 2).

” This nation’s accumulation of losses are due to mistakes in managing our oil and gas resources,” said Kurtubi, in Meeting Room of Committee II Building B on the 3rd floor, Senayan, Jakarta. Futrthermore, Kurtubi explained that the technical officer is responsible for the problem.

“Just a comparison of the Tangguh LNG export price of U.S. $ 3.35/mmbtu. The Gas selling price of DS is U.S. $ 6/mmbtu. Badak LNG selling price is U.S. $ 13/mmbtu. Domestic LPG Price is U.S. $ 15/mmbtu. We have reminded all parties that the sale of Tangguh LNG to China is very cheap and potentially adverse the state billions of U.S. $. The relevant technical officials should have understand that the Tangguh LNG price formula is technically will adverse the state because the oil prices is restricted to a maximum of $ 25, “he explained.

In his presentation, Kurtubi explained that steps can be taken to maximize the management of oil and natural gas in Indonesia, among others; agencies that have the authority in managing the national petroleum needs to be evaluated which is BP of oil and gas that is proposed to be liquidated to the NOC / BUMN on oil and gas, BPH on oil and gas was liquidated while the Ministry of ESDM / Directorate General on Oil and Gas as a regulator. In addition, Indonesian petroleum mechanism needs to be changed into Business to Business, and Government is in the above of that mechanisms.


“Management of national petroleum is in contrast with the Article of 33 UUD 1945 and not in accordance with the principles of efficient management and has proven extremely detrimental to the state. As the substance of the revision mechanism of petroleum using pattern B to B, do the simplification of the system and enforce the principle of lex specialist, “said this Lecturer and Examiner thesis / dissertation at the Graduate FEUI.

From the results of this RDPU, there are some conclusions such as:
1. The Law on Oil and Gas No. 22 Year 2001 should be immediately revised totaly, if necessary, it is revoked by PERPPU, and the gas management system is returned according to the mandate of Article 33 of the 1945 Constitution.

2. Some articles have been removed by the Constitutional Court, namely Article 12, act 3 (granting authority to the BU and BUT), Article 22 act 1 (DMO max 25%), Article 28 act 3 (fuel and gas prices left entirely to market mechanisms) because it is not in accordance with the 1945 Constitution on Article 33. But the Indonesian government, in this case, the Ministry of Energy and Mineral Resources did not take remedial action against the legislation that has been declared unconstitutional by the Constitutional Court.

3. Since the year 2001 with the enactment of Law No. 22 of 2001 on Oil and Gas, almost no reserves is found in the new block. So, the production is only relying on an old oil refinery which has matured. As a result, the production is very low. It can be seen from the data that during the year 2010 only about 960,000 b / h.

4. As the developing country with potential for oil and gas resources that are relatively very large, Indonesia needs a NOC / BUMN of oil and gas as the manager of the wealth of national oil and gas. SOE, an instrument of the country, must be managed efficiently and in business to support the accelerating achievement of public welfare.

5. State Owned Enterprise (BUMN) of Oil and Gas as the Mining holder should be designed as an integrated oil company (integrated oil company) and shall otherwise not be sold. The existing oil and gas riches in the earth center, must be controlled and owned by the state. Recorded as assets by BUMN of oil and gas, and can be dimonetization by the BUMN of oil and gas.

Tulisan ini tersedia dalam: Bahasa

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