UNS — The State Administration Law and Energy Research Group (RG HAN and Energy) Universitas Sebelas Maret (UNS) Surakarta organizes a Focus Group Discussion (FGD) entitled “Toward the Investment-Friendly, Accountable, Effective, and Efficient, Upstream Oil and Gas Business Concept,” Saturday (1/5/2021) morning, at UNS Inn. The FGD aims to discuss the substance, force of law, and constitutionality for the Oil and Gas management after the ratification of the Constitutional Court Decision (MK) No. 36 /PUU-X/2012 that dissolve the BP Migas with a new organization establishment. This Decision is considered degrading the provision of Article 33 of the 1945 Constitution.
Four speakers are invited to the FGD, namely Drs. Harjono, S.H., MCL (Former Deputy Chairman of the Indonesia Constitutional Court of 2008), Prof. Dr. I Gusti Ayu Ketut Rachmi Handayani (Dean of Faculty of Law – FH UNS), Ir. Benny Lubiantara (Oil and Gas Practitioner), and Dr. Lego Karjoko (law and energy practitioner). The first speaker, Drs. Harjono, S.H., MCL., who participated in the legal testing for Regulation No. 22 of 2001 regarding Oil and Gas, which receives a lawsuit from an Islamic organization, delivers a dissenting opinion. “Our fellow (notes: Constitutional Court Judges) just wondering the great authority hold by this organization exceeding other organizations. The second is the idea of BP Migas’s existence that seems like degrading the government position in partnership deals with private firms. While this practice is a common international practice,” explains Drs. Harjono, S.H., MCL.
While the BP Migas position is considered unconstitutional based on Article 33 of the 1945 Constitution, Drs. Harjono, S.H., MCL., states that the BP Migas establishment has no constitution problem because it is established with a Regulation, which prepared by the President with the DPR based on the 1945 Constitution.
Following Drs. Harjono, S.H., MCL., material, Prof. Ayu discusses the Constitutional Court interpretation on the phrase ‘controlled by the state.’ She mentioned that the phrase could have five meanings. First is the policy provision (beleid), administrative act (bestuursdaad), arrangement (regelendaad), management act (beheersdaad), and supervision. Further, she mentions two points of interest after the implementation of the MK No. 36 /PUU-X/2012. First, after the implementation, there is no Regulation on Oil and Gas sector. Second, SKK Migas remains as the institution delegated by the government to organize the management of upstream oil and gas activities.
Meanwhile, Ir. Benny Lubiantara, as an oil and gas practitioner, states that there must be a certainty for the stakeholders of the upstream oil and gas business in terms of governance model through the new Oil and Gas Regulation. This opinion from Ir. Benny is supported by Dr. Lego Karjoko, who considers oil and gas governance certainties is needed in Indonesia. Dr. Lego adds that oil and gas governance must be based on the Pancasila with two or three pillars.
The two pillars are the policy function through the Ministry of Energy and Mineral Resources (ESDM) and Regulation and commercial function from the Pertamina or the new State-Owned Enterprises. “While the three pillars basis will include policy function through the Ministry of Energy and Mineral Resources (ESDM), regulation function through BHMN or State-Owned Enterprises, and commercial function through NOC and IOC,” he concluded. Humas UNS
Reporter: Yefta Christopherus AS
Editor: Dwi Hastuti