SKK Migas wants exemption from land law

By Godang Sitompul

Upstream authority SKK Migas calls on the government to exempt oil and gas upstream companies from some obligations set in the land law and regulation issued last year.

SKK Migas? Chairman Rudi Rubiandini said in a statement on Friday that oil and gas contractors were facing problems related to land acquisitions following the enactment of Law No. 2/2012 on Land Appropriation for Development for Public Interest and the issuance of its implementing regulation, Governmental Regulation (PP) No 71/2012.

Under the law, the oil and gas infrastructures are categorized as facilities for public interest.

The law and regulation stipulate among others land appropriation should be carried out within 282 days and the size of small-scale lands that can be appropriated by companies themselves is limited to one hectare.

?Exemption clauses are thus needed for oil and gas upstream activities,? Rudi said in the statement.

Editing by Johannes Simbolon