House opposes involvement of foreign firms in subsidized oil sales

The Commission VII of the House of Representatives (DPR) has strongly opposed the involvement of foreign companies in the sales of subsidized fuel in the country, saying it was against the Constitution Court's decision, Bisnis Indonesia reported Tuesday.

The opposition was expressed on Monday during the meeting with oil and gas downstram authority BPH Migas.

Almost all the factions in the commission which is in charge of mine, oil and gas and investment, criticized the government's plan to involve foreign oil companies in the distribution of subsidized fuel beginning next year.

They said that the involvement of the foreign companies was against the Constitution Court's decision which had annulled a number of articles in the Oil and Gas Law No. 22/2001 that allowed foreign firms to sell subsidized fuel.

The government allowed last year private companies both domestic and foreign to enter the country's fuel market as part of the liberalization of the sector which was previously monopolized by Pertamina. (*)