MK rejects proposal of BPH Migas dismissal

By Godang Sitompul

The Constitutional Court (MK) has rejected a proposal from the Labor Union of state oil and gas company PT Pertamina (KSPMI) asking for the dismissal of the downstream oil and gas authority BPH Migas.

In a decision made after conducting a plenary session on Thursday in Jakarta, MK said that BPH Migas cannot be regarded in similar case with the upstream oil and gas authority BPMIGAS, which was dismissed on 13th November 2012.

According to MK, the constitutional position of BPMIGAS cannot be made as a basis to consider the constitutional status of BPH Migas as both institutions are different in their legal status.

BPMIGAS, according to MK, is strongly related to the exploration and exploitation of oil and gas, so that it has to do with the state control over the natural resources, which is based on the constitution should be developed for the welfare of all Indonesian people.

On the other hand, the function of BPH Migas is to secure the availability and distribution of oil and gas in the downstream sector.

Editing by Benget Besalicto Tnb.