A lawmaker urged the government to issue regulation in lieu of law (Perppu) while waiting for the House of Representatives to wrap up debate on the revision of the Oil and Gas Law.
Kurtubi of the Commission VI of the House of Representatives said here on Saturday that revision of the Oil and Gas Law is crucial to end problem in the energy sector, which has triggered polemics.
“The Oil and Gas Law has to be revised immediately. The Commission VII is working on it but we can understand the debate could drag on as it has ten factions with different views. If the government is aware that the sector is in emergency, it could issue Perppu,” he said.
The politician of the Nasdem Party said steps to improve anything in the oil and gas sector should start from its legal basis that is Oil and Gas Law.
He went on to comment about the “violation of the state Constitution by the Oil and Gas Regulator (BP Migas), which instead of being dissolved was given a new name Special Unit of Upstream Oil and Gas (SKK Migas).”
He said the SKK Migas has to be dissolved as management of oil and gas sector has to be in the hands of a state company to better guarantee the national interest.
Investment in the high risk oil and gas sector may force the government to look for foreign investment, but state company in this case PT Pertamina is the one having the authority in upstream oil and gas management, he said.
“We then are in control and are sovereign when we use the Law No. 8 of 1971. Everything was in a mess after the Oil and Gas Law was replaced,” he said.
He said licensing procedure is still complicated, adding, “this a one of the factors discouraging investment in the oil and gas sector.”
He said foreign investors have complained that they need 70 licenses before drilling could start.
“The solution is simple, just make things simple, staring by revising the Oil and Gas Law,” he added.