Luhut to submit draft oil law to House next week
Thursday, August 18 2016 - 01:04 PM WIB
Interim Minister of Energy and Mineral Resources Luhut B. Panjaitan who is also Coordinating Minister of Maritime Affairs, said he will submit the draft oil and gas law to the House of Representatives next week, hoping the deliberation on the bill could start as soon as possible.
?We initiate an accelerated deliberation on the oil and gas bill. The deliberation on the draft law has been delayed for three years. The bill is our (the government?s) initiative. If situation permits, the draft law will be submitted to the House of Representatives next week. And I expect to talk with the House (on the bill) next week,? Luhut said.
Luhut also said he has held talks with Vice Minister of Finance Mardiasmo on the revision of Governmental Regulation No. 79/2010 which has been blamed on the slowdown in investment in the oil and gas sector.
?I?ve talked with Pak Mardiasmo. Next week, the revision of the GR 79 is expected to be completed because there are only few items in the regulation which needs revision. We hold out an expectation that (thanks to the revision of the regulation), investment in the upstream sector will get improved. (The revision has become more urgent) in view of the current oil prices,? Luhut said.
The Indonesian Petroleum Association (IPA) has long complained about the GR 79.
?GR 79/2010?s introduction in 2010 significantly changed the taxation and cost recovery governance of oil and gas operation, to the extent that it departed further away from the original spirit and provision of Indonesian PSC terms and created a disincentive for investment,? IPA recently said in a statement, adding several technical aspects of the regulation in taxation and audit principles, cost recoverable governance, risk and liability definition are high on the list for consultation and revision.
Editing by Johannes Simbolon