"The presidential decree is issued to prevent vacuum and at the same time give certainty to oil and gas businesses," president said.
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono issued a decree on Wednesday on transfer and implementation of tasks and functions of the Upstream Oil and Gas Regulating Body (BP Migas) following the agency`s dissolution to give legal certainty to oil and gas investors and businessmen.

"The presidential decree is issued to prevent vacuum and at the same time give certainty to oil and gas businesses," he said at a press conference here on Wednesday in response to the recent ruling of the Constitutional Court leading to the dissolution of BP Migas.

He said the decree was reflection of the government`s responsibility following the court`s ruling.

To oil and gas investors and businessmen at home and abroad, he said that "all agreements and contracts that have been made remain effective. All works that are being carried out under the cooperation between BP Migas and parties will continue as they are. So, there must not be any doubt about it," he said.

President Yudhoyono said the presidential decree signed on Tuesday night states that during the transitional period the former BP Migas office is now put under the Ministry of Energy and Mineral Resources.

"The organization is under the coordination of the minister of energy and mineral resources and will continue carrying out its present tasks and functions," he said adding he had ordered the minister of energy and mineral resources to conduct an audit on the agency so that he could give transparent explanation to the public.

Regarding former BP Migas employees, President Yudhoyono said that they would remain in their present positions while assuring their future.

The president said the government would immediately formulate a new regulation to assure transparency in the sector.

President Yudhoyono said BP Migas was set up by former president Megawati Soekarnoputri based on Law Number 22 of 2001.

"The principle and goal for the establishment of BP Migas then was to avoid conflict of interest," he said.

He said downstream oil business cooperation used to be carried out by a unit within state-owned oil company Pertamina which is at the same time also a business entity.

He said the government also wished to separate its task as a regulator and policy maker.(*)

Editor: Heru Purwanto
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