OIL AND GAS INSTITUTION IN INDONESIA WAS OUTLAW

Lightning strike over Jakarta in one daylight November 12, 2012 ago without any black cloud hanging in the sky, when a breaking news broadcasted from Supreme court announced a decree, to closed down a special Government body, BP.MIGAS, who managed Oil and Gas business in Indonesia since year 2001 ago.

Indonesia republic is a member of Oil export countries, OPEC who may influence oil prices in the world by an agreement to ajust production level of every member. Oil business one of high income resources for the country. 30% of National budget coming from oil and gas.

Special law created as a based to set up this new institution in 2001 through tough discussion in parliament, but no one realized that this new body was outlaw, contra to the National constitution year 1945. The  constitution clearly stated that all water and mineral over and under the surface of Indonesia soil used for Indonesian citizen as much as possible.

The composition of  domestic and foreign oil companies production are unbalance 20% : 80%. Domestic company, P.T.PERTAMINA own only 20% and the rest by production sharing contract with the foreign companies, some since Indonesia under Dutch colonization.

Since Indonesian independence 67 years ago, oil and gas production not used for citizen's welfare as constitution said. That is the main reason for the closed of this special body, P.T.MIGAS.

That mean that in 11 years period, oil and gas income were missused such as Gas production all for export destination. Electricity company belong to the Government, PT.PLN had to buy oil with higher price then gas and subsidized by National budget, in Rupiah 30 trillions equivalent to US$ 300 billions in order to keep electricity alive.

So the gas production not benefited to the country but citizen subsidized the gas for profit to the foreign oil companies who export the gas. It was humiliation for the Government.

Surprisingly, no one rejeceted Supreme court decision from President level, Ministers, Parliament members, Universities and top lawyers in the country. The decision implement at once after the announcement. BP.MIGAS function and employee transferred under Energy and Resources Department.

Supreme court got letters from 30 public figures and 12 mass organizations among other Din Samsuddin, head of PP.Muhamadiyah, Dr.Rizal Ramli, Dr.Kurtubi and Moslem Organizations who asked to review the special law no.22/2001 as a based to set up this special body, PT.MIGAS. Without any discussion with the Government, Parliament, lawyers, Universities  and public as well. Without any warning, Supreme court with his power closed down an organization who managed billions of US.$ value contracts. The main reasons behind the review are BP. MIGAS let the liberation happened and highly influenced by foreign side.

This decision might be happened and highly respected only by independent judges lead by Mr.Mahfud, top figure in the country, ex Minister in previous Government.

Hundred of foreign contracts now under review and renegociate with the Goverment, Energy and Resources Department P to G (Private to Government) and the new contracts will ajust accordingly more to the benefit of the domestic.

Since the Government faced Asia economic crisis in 1997 who beg for fund injection for huge amount of debt from IMF, International Monetary Funds, President Megawaty Soekarnoputri pushed to set this new body and a set up special law in order oil and gas income should go to pay the debt to IMF first.

Now the Goverment wake up after 11 years halunization to ajust the new regulations that the new contract with foreign, joint venture companies and local should consider of the welfare of the Nation.