UPDATE: Megawati signs ruling on ?Implementing Body?

Minister of Energy and Mineral Resources Purnomo Yusgiantoro confirmed on Wednesday President Megawati Sukarnoputri had signed a government decree on the formation of the so-called Implementing Body which has the highest authority over Indonesia?s upstream oil and gas industry.

?The President has signed the decree on the formation of the body,? Purnomo told reporters.

The minister said however the government had yet to complete administrative preparations for implementing the decree.

Existing oil and gas law, which came into force late last year, stipulates that the Implementing Body must be formed by November this year to take over the decades-long role of the state-owned oil and gas firm Pertamina in regulating and managing the upstream oil and gas industry. The body has authority to sign oil and gas contracts. It is directly accountable to the President.

Another key agency called Regulatory Body must also be formed by November this year, while related government regulations will have to ready before year-end, according to the oil and gas law. The Regulatory Body will take over from Pertamina the task of distributing fuel throughout Indonesia.

Oil and gas director general Rachmat Soedibiyo has been tipped to head the Implementing Body. His appointment requires approval from the House of Representatives according to Oil and gas Law which became effective late last year. (alex)