BPH Migas refuses govt?s decision on tender right

Oil and gas downstream regulator BPH Migas has expressed the objection to the government’s intention to take over the agency's authority to hold tender for gas distribution and transmission pipelines, saying that it was a setback, Media Indonesia reported Thursday.

 

BPH Migas committee member Sri Wahyu Purwanto made the remarks in Jakarta Wednesday in response to the intention of the Ministry of Energy and Mineral Resources' Directorate General of Oil and Gas to take over the right of BPH Migas to hold tender for gas distribution and transmission pipelines.

 

Sri Wahyu argued that Law No 8, 1971 on Pertamina that gives authority to the government to tender various projects in oil and gas sector, including downstream sector, has been revised through the issuance of a government regulation No. 36, 2004 that gives special authority to BPH Migas to tender various projects in downstream sector.

 

“Definitely, (BPH Migas) will not agree as we are future-oriented. In regards to state wealth protection, the government should play a minor role. The task should be carried out by BPH Migas as regulator,” Sri Wahyu said. (*)