Jakarta, CNBC Indonesia – The legislative body (Baleg) of the DPR held an RDP (Panja Meeting) in the framework of harmonization of the Bill on the Second Amendment to Law Number 22 of 2001 concerning Oil and Gas with the Special Task Force for Upstream Oil and Gas Business (SKK Migas).
One of which was discussed, namely the oil and gas Special Business Entity (BUK) which acts as a substitute for SKK Migas.
Head of SKK Migas Dwi Soetjipto hopes that BUK Migas, which will later be included in the Oil and Gas Bill, can have a fairly strong position. Especially as an extension of the government to regulate the course of business activities in the national upstream oil and gas sector.
“So it is really appropriate to represent the country because in the role of BUK, as previously stated, ladies and gentlemen, it is indeed different from other BUMNs where other BUMNs are operators,” Dwi said in a Hearing Meeting (RDP) with the Baleg DPR RI, Wednesday (30/8/2023).
According to Dwi, even though it has a special word as an extension of the state, this BUK must also continue to play its role as a business entity. However, this BUK is also expected to not only think about profit or corporate performance.
“But earlier it was conveyed about how this business entity represents the interests of the state. So what will be the focus later in terms of performance will be in addition to production issues. We have already stated that in the strategic plan (Renstra) it just so happens that the strategic plan that we built has mostly represented it,” he said. Bi.
The strategic plan in question includes: First, focus on the issue of energy security. Dwi assesses increasing domestic oil and gas production to be something that is quite important to be carried out through cooperation contract contractors (KKKS).
“This business entity will later play a negotiating role in relation to this issue, split for development, where it is no longer too rigid on the split that is best for the government, but how can these reserves really be accelerated into production to fill an energy need earlier,” he said.
Secondthrough this BUK, it is hoped that the oil and gas industry will not only contribute to state revenues but also provide a multiplier effect for supporting industries.
“Currently we have implemented that the KKKS/companies that are really bound by the TKDN are the upstream oil and gas industry. Because in the upstream oil and gas industry the TKDN component is the key. So if they want to buy something, if the TKDN is in below what is in our documents, our standards, a minimum of a certain percentage, if it’s below that we reject it,” he added,
Then the third is about environmental issues. Dwi added that BUK Migas is actually not much different from the current position of SKK Migas. Where is the role or position of SKK Migas under the president and directly responsible to the president.
“Of course the responsibility in this matter lies with the president. But in day-to-day operations it is integrated with the Ministry of Energy and Mineral Resources,” said Dwi.
He also proposed that BUK Migas, which will be included in the Oil and Gas Draft Bill, be separated from the regulators. This is because, based on input from oil and gas business actors, they requested that this BUK be independent.
“Input from IPA which consists of KKKS actors, they convey that BUK which is a change to SKK Migas must be independent. Not separate from the government, but independent in determining bidding or tenders that will be carried out later to determine who is a contractor in an area. That The characteristics of BUK that we said earlier are that they are independent,” said Dwi.
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