Hatta said the government would issue a new regulation to form a legal basis for the establishment of the new unit so there are no uncertainties regarding the matter.Jakarta (ANTARA News) - The government has decided to establish a new unit to regulate the nation`s upstream oil and gas sector, after BP Migas was dismantled by a Constitutional Court ruling.
"The new Unit for the Implementation of Upstream Oil and Gas Activity will function under the supervision of the Ministry of Energy and Mineral Resources. This is in accordance with the Constitutional Court decision," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Tuesday evening.
He stated that oil and gas activities will not be disrupted in the wake of the dissolution of BP Migas, because the Ministry of Energy and Mineral Resources will take over the duties of the erstwhile oil and gas regulatory agency and continue the exploration and production activities.
Hatta said the government would issue a new regulation to form a legal basis for the establishment of the new unit so there are no uncertainties regarding the matter.
"A presidential regulation is needed to put things in place, and it will be ready tonight," the minister continued.
"All employees, assets, and applicable laws for BP Migas will now be for the new upstream unit," he added.
Hatta said the government guaranteed that all upstream activities would continue as usual.
"Therefore, there should be no doubt or speculation regarding this issue. The Constitutional Court decision is basically a judicial process that we have to go through," he explained.
Hatta noted that the employees of the new upstream unit will not be civil servants, but their salary and incentives will come from the state budget.(*)
Editor: Heru Purwanto
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