New regulation requires minister approval for changes in board of mining, energy firms

Minister of Energy and Mineral Resources Ignasius Jonan has issued a new controversial regulation which among others stipulates that changes in the board of directors/commissioners, and in share ownership of companies engaged in energy and mining sectors in the country require the approval of the minister, Kontan reported on Friday.

The paper quoted ministry spokesman Sujatmiko as saying that the new Ministerial Regulation No 42/2017 on the supervision of business activities in the energy and mineral sectors is aimed at improving the effectiveness of government oversight of the sectors.

?Substantially, the Ministerial Regulation No 42/2017 is not a new thing, it is merely reasserting the Mineral Law, Oil and Gas Law, Electricity Law, and Geothermal Law,? Sujatmiko said.

The new regulation is aimed at making sure that the development and exploitation of the energy and mineral resources would be directed at providing greatest benefit to the country.

Executive Chairman of the Indonesia Private Power Producers Association (APLSI), Arthur Simatupang said that industry players were shocked with the new regulation. He said that the new regulation is not in line with the law on corporation. ?The new regulation (makes the government) enters the stage of micro managing companies. This is not the role of the government,? he said as quoted by the paper.

Marjolijn Wajong, Executive Director of the Indonesia Petroleum Association (IPA), said that the association has yet to discuss the new regulation. (*)