OIL & GAS BILL: Deliberation of the oil and gas bill reaches a deadlock over the licensing authority
Monday, July 16 2001 - 02:52 AM WIB
The government insisted that the authorities should lie with the central government, in this case the minister of energy and mineral resources, in accordance with Government Regulation No. 25/2000, while some legislators argued that local authorities must be given a say by requiring recommendation from local administration.
The latter contended that the government could not just use PP No. 25/2000, and disregard Law No. 22/1999 and No. 25/1999 on regional autonomy and fiscal balance, that give local administrations full authority to manage their own natural resources, according to the chairman of the House of Representatives' Commission VIII on energy and mining, Irwan Prayitno.
The government, which in this deliberation was represented by Director General of Oil and Gas Rachmat Sudibyo, argued that the government needed only consultation with local authorities, while the House wanted the government to get recommendation from local administrations before issuing any oil and gas licenses.
Because of their differences, Irwan said, the government and the House agreed to find a special time to discuss their differences over the issue. (*)