Oil and gas law revision offers certainty to industry: lawmaker

Oil and gas law revision offers certainty to industry: lawmaker

Illustration: An off-shore oil drilling platform. (ANTARA/HO-SKK Migas).

Jakarta (ANTARA) - Deputy Chairman of the House of Representatives' (DPR RI's) Commission VII Eddy Soeparno opined that the amended Oil and Gas Law will provide legal certainty to investors and regulators.

"We are optimistic that the new Oil and Gas Law would invigorate competitiveness in the oil and gas industry. The amended law will also address several issues related to the national oil and gas sector," Soeparno stated during a focus group discussion about the future of Indonesia's oil and gas industry in Jakarta on Tuesday.

The legislator noted that the amended law would tackle the political issue, as the progress in revision of Law No. 22 of 2011 on Oil and Gas had been stalled in parliament since 2018.

"The amended law will also resolve the juridical issue on the sector, as the Constitutional Court had earlier annulled several articles on the original Oil and Gas Law," he stated.

The amended law is expected to enhance and facilitate the sector's regulator, Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), in achieving the daily oil lifting target of one million barrels by 2030, the commission VII deputy chair noted.

Related news: Indonesian President chairs meeting on oil and gas draft law

Soeparno highlighted that as long as the amended law is not finalized by the legislature, SKK Migas will remain as an ad-hoc institution, a factor that may cause investors to hesitate to invest in the industry.

Investors would prefer to engage in business with a permanent government institution established on a firm legal basis, the legislator stated.

The amended Oil and Gas Law will also facilitate easier permit application for investors in Indonesia's oil and gas industry sector, he added.

"The current regulation triggering hesitation among investors to invest in the industry due to complicated red tapes have made our country an unattractive investment target for foreign investors," Soeparno stated.

The legislator made assurance that the legislature will proceed with the revision as the parliament's Legislation Body had agreed to include the Oil and Gas Law amendment in next year's national legislature programme. 

Related news: Indonesian oil law revision to be wrapped up next year
 

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