Deregulation plan in oil and gas sector not realistic: Expert

The government?s plan to deregulate the country?s oil and gas sector unveiled by President Megawati Sukarnoputri in Japan recently is unrealistic, and could backfire to the country?s overall oil and gas development problem, according to oil and gas expert.

Bacrawi Sanusi, an expert at the University of Trisakti, said in Jakarta on Friday that the oil and gas sector, which have been technically under the control of foreign companies, had been ready yet to a further deregulation.

President Megwati told Japanese businessmen during a meeting in Tokyo recently that Indonesia would further deregulate its oil and gas sector to comply with the more liberal oil and gas law, which is now being deliberated by the House of Representatives.

Bachrawi said that the deregulation would bring the industry into the full control of foreign investors. ?The deregulation will instead backfire the oil and gas development plan,? he said.

According to him, the oil and gas sector, which is relatively immune from the country?s economic crisis, could not bring much help to deal with the financial woes because larger part of the earnings from sector was all sent home by the foreign investors.

The government should take a lesson from such a bad experience, he warned. ?A further deregulation will brings much more damage rather than advantages to the economy,? he said. (*)