Parliament doubt the Revised Oil and Gas Legislation can be finished This Year

Oleh Andrew Chandra 13 August 2015

It cant be done within this year We need to seriously discuss about this until the chapters are clear and not ambiguous

gedung DPR
The oil and gas bill is the initiative of the Parliament. It means that the discussed legislation is still a draft made by the House. Donang Wahyu|KATADATA

KATADATA ? The House of Representative has stated their pessimism regarding the revision of oil and gas legislation to be done within this year. Even though it has been put in the national legislations program 2015, until now the Commission VII of the Parliament still hasn?t discuss the bill with the government.

A member of the Commission VII of the House from Gerindra Fraction, Ramson Siagian, said that the discussion couldn?t be done in a hurry. In the draft preparation, the Parliament need to review it very thoroughly so that there would not be any business activities on any chapters there.

The discussion would not be done within the remaining 5 months of this year. ?It can?t be done within this year. We need to seriously discuss about this until the chapters are clear and not ambiguous,? said Ramson to Katadata, Wednesday (12/8).

According to Ramson, the oil and gas bill is the initiative of the Parliament, which means that the bill is a draft that is prepared by the House. However, the government would also design and prepare their own bill. Later on, the government could propose their draft in the meeting. He also said that possibly the bill would be discussed after the reses period is over on August 13th 2015.

Agreeing with Ramson, the Deputy Chief of the Commission VII of the Parliament, Satya Widya Yudha, said that until today the draft law is still in the stage of internal discussion. Regarding the time of discussion with the government, he said that it would be decided after the preliminary session.

Satya also said that there are several important points that are to be discussed in the bill, and one of them is regarding the cooperation system between the government and the oil and gas contractors. According to him, later on the scheme of the oil and gas cooperation contract would not only use the PSC (production-sharing contract) system.

And even though it is still in the form of academic stage, Satya has revealed that at least there would be 7 important points discussed in the revised legislation. First regarding the management of the upstream sector as well as in the oil and gas companies, which consists of the form of the agency, institution / organizational type, duty, and authority.

Second, the setting and management of the workspace, which includes the party that prepares for the work area, and the other party that offers the work area. Third, the offer in new work areas and the extension in the existing ones would be included as the privilege of Pertamina. Other than that, there?s the giving of the 15% participation right or interest to the Pertamina.

Fourth, the production-sharing scheme, the state?s revenue, the recovery cost, and 10% of participating rate would be given to the regional-owned enterprises or the local government which is the source of the oil and gas. Also, there?s also discussion regarding the allocation portion of the oil and gas for the domestic needs.

Fifth, the condition on the cooperation contract (KKS) Migas is the same like the contract period, the extension period, and et cetera. Sixth, regarding the development and supervision of the oil and gas sector, either in up or downstream as well as the authority from each sector. Seventh, the condition for Petroleum Fund or the oil and gas fund, which include the source of the fund, purpose, mechanism, management and audit.

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