Some parties rejects oil and bas bill, but House says, it's too late

Regents across Indonesia, and six other gas and oil-related associations have expressed their rejection over the completed oil and gas bill that will be passed into law on Oct. 24. The House of Representatives, nevertheless, consider the rejection as too late.

Executives of the Communication Forum for Regencies Producing Oil and Gas, for instance, had filed their rejection with the House's Commission VIII on energy and mining as well as with the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction at the House.

Earlier, executives of the Association of Regents whose regencies producing oil and gas, led by Indramayu regent Irianto, also took their rejection to the House.

Nevertheless, the House considered the rejection as too late.

Irianto contended that the associations could not accept the bill because regents were never involved in the deliberation of the bill.

The communication forum, meanwhile, aired a more fundamental argument.

The forum's secretary general, Irfan Djafar, said in a statement that the oil and gas bill was against the Constitution, especially Article 33 verse 2, which says that natural resources belong to the state for the welfare of its people.

He noted that the new oil and gas bill gives a chance to foreign companies to control domestic oil and gas resources, and therefore, it violates the Constitutions.

"If the bill is still passed into law, we will spearhead a boycott movement," Irfan said.

Commission VIII chairman Irwan Prayitno contended that the rejection was just too late as the deliberation had been completed, and the bill was about to be passed into law.

Those associations should have conveyed their concerns when the bill was under deliberation. Otherwise, now is just too late, Irwan said.

"Moreover, they contended that those regents were not involved in the deliberation of the bill. This is unacceptable, because since the very beginning, we are seeking inputs from local regencies," he said.

If the regents demanded certain percentage of income from the oil and gas sector, it would not be accommodated in the oil and gas bill, as it had been accommodated at another law, Law No. 25/1999 on fiscal balance.

Commission VIII deputy chairman Emir Muis added that the new bill would not sell Indonesia to foreign oil and gas companies as it basically is the same with the current system of production sharing contract except that the licensing will be taken over by the government from state oil and gas company Pertamina.

The new bill, Emir said, is more siding with the people in local areas rather than the current Law No. 8/1971. The new bill, for instance, clearly mandates that all oil and gas bills to do community development programs. (*)