OIL & GAS BILL: Indonesia sees new oil and gas law in September: Report

The Indonesian government expects parliament to ratify a new oil and gas law, which will dissolve the monopoly of state oil firm Pertamina, in September, a senior mines and energy official has said.

"There is no problem with the draft law discussion in parliament. Ratification is expected after August or in September," director-general oil and gas, Rachmat Sudibyo, was quoted by Reuters as saying on Monday.

Parliament has been debating the sweeping law aimed at improving national oil and gas resource management since April.

Under the draft law, Pertamina's monopoly would be dissolved, including its control over distribution and the downstream oil products market.

Pertamina has broadly endorsed the reforms but raised concerns about the mechanics of phasing out expensive subsidies aimed at keeping prices low for impoverished consumers.

Indonesia has allocated 53.7 trillion rupiah ($4.7 billion) for fuel subsidies in its 2001 budget, revised from an original 41.3 trillion rupiah (US$=11,340 rupiah). (*)