House speaker urged to delay approval of oil and gas law

At least 10 prominent members of the House of Representatives (DPR) have urged House speaker Akbar Tanjung to delay the improvement of the proposed oil and gas law, which is scheduled to be made in a House plenary session on Wednesday, next week.

The legislators said that the passing of the draft of the oil and gas legislation into law should be delayed to allow the House members to revise some of its contents, which they said are too liberal.

The new law will, among others, remove the monopoly of state oil and gas company Pertamina in oil and gas exploration, production and retail sales. This will open opportunities to private companies both local and foreign ones to enter the businesses now under the control of Pertamina.

According to the 10 legislators, the new gas and oil law is against the Constitution in which natural resources should be under the control of the state.

The draft is the second oil and gas law proposed by the government. The first one which was proposed to the House in 1999 was rejected on fear that the new legislation would result in the fall of the oil and gas industry into foreign hands. (*)