"We hope this issue is resolved soon so the current uncertainties can be gotten rid of," Executive Director of the Indonesian Petroleum Association (IPA) Dipnala Tamzil said.
Jakarta (ANTARA News) - Oil and gas contractors have urged the government to put an end to the uncertainties surrounding the sector, in the wake of the dissolution of upstream oil and gas regulatory agency BP Migas on Tuesday.

Executive Director of the Indonesian Petroleum Association (IPA) Dipnala Tamzil said here on Wednesday that after the Constitutional Court (MK) issued a ruling which led to the dissolution of BP Migas, the government should provide immediate directives and guidance in order to reduce the potential impact of the current situation on future investment in Indonesia.

"We hope this issue is resolved soon so the current uncertainties can be gotten rid of," she said.

According to the MK`s decision No. 36/PUU-X/2012, dated November 13, 2012, BP Migas was against the Constitution.

"As a partner of the government, IPA expresses its support and commitment to the government in ensuring the continuation of oil and gas production operation activities. We will also support the government in its efforts to obtain income and energy supplies for the state," Dipnala said.

IPA was established in 1971 and now has a membership comprising 53 national and multinational oil and gas companies, 111 supporting oil and gas industries and some 2,000 individual members.

The Constitutional Court ruled that the articles governing the tasks and functions of BP Migas in Law No. 22/2001 on Oil and Gas ran counter to the 1945 Constitution and had no legal binding.

The articles found to be unconstitutional were Article 11 sub-article (1), Article 20 sub-article (3), Article 21 sub-article (1), and Article 49.

"All matters relating to the executive body in the elucidation of the oil and gas law contradict the 1945 Constitution and have no legal binding," MK chairman Mahfud MD said.

The Constitutional Court also ruled that Article 1 point 23, Article 4 sub-article (3), Article 41 sub-article (2), Article 44, Article 45, Article 48 sub-article (1), Article 59 letter a, Article 61, and Article 63 of the oil and gas law were against the constitution and had no binding legal force.

The MK made the decision after reviewing Law No. 22/2011 on Oil and Gas.

Earlier, 30 Islamic figures and 12 Islamic organizations including the Solidarity for Parking Attendants, Street Vendors, Employers and Employees (SOJUPEK), Association of Indonesian Islamic Preachers (IKADI), Islamic organization Muhammadiyah, Muslim group Hizbut Tahir Indonesia, and Association of Indonesian Muslims called for a judicial review of the law, saying that the law would lead to overexploitation of oil and gas and also make the nation vulnerable to foreign influence.(*)

Editor: Heru Purwanto
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