Jakarta (ANTARA News) - Vice Minister of Energy and Mineral Resources Rudi Rusbiandini denied on Sunday that Law No. 22 of 2001 on Oil and Gas has given priority to foreign contractors over domestic companies.

"Foreign contractors only perform the government`s duties. They receive fees of 15 percent for finding oil and fees of 30 percent for finding gas. So I wonder which of the clauses in the law has favored foreign investors," he said.

A number of Islamic figures and mass organizations have filed a demand for a judicial review of the law with the Constitutional Court (MK).

They alleged the law gave priority to foreign investors over domestic companies so that it violates Article 33 of the 1945 Constitution.

Rudi said the state remains in full control of oil and gas reserves.

"Oil and gas sovereignty fully remains in the hands of the state. We only need foreign contractors to tap what we really want to find," he said.

He said cooperation contracts with foreign contractors had been signed along before the law on oil and gas was enacted in 2001.

In performing their duties, the foreign contractors supervised tightly by the Upstream Oil and Gas Regulatory Body (BP Migas), he said.


Editor: Jafar M Sidik
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