UPDATE: Rachmat installed as Balak chief

Minister of Energy and Mineral Resources Purnomo Yusgiantoro on Monday installed Rachmat Sudibyo as chairman of the Implementing Body (Balak) which holds the highest authority over the country?s upstream oil and gas sector.

Rachmat was previously oil and gas director general of the ministry of energy and mineral resources.

Purnomo also on Monday inaugurated Bangun Usman Harahap as Balak general affairs deputy chairman. Bangun had served as head of the finance section of the ministry of energy and mineral resources.

Existing oil and gas law entails that Balak has one vice chairman and several deputy chairmen.

In Monday?s induction ceremony, Purnomo asked Rachmat to prepare Balak vice chairman and the other deputy chairmen.

The President has authority to appoint Balak chief who directly answers to him/her, according to the oil and gas law which became effect late last year.

Balak has authority to award oil and gas concessions, sign contracts with oil and gas contractors, supervise their operation, and regulate the oil and gas industry. State oil and gas firm Pertamina had held the authority for so many years.

Meanwhile, Rachmat said Balak would have four deputy chairmen respectively in charge of general affairs, planning, operational affairs, and financial and economic affairs.

People selected for those positions will have to undergo fit and proper test, Rachmat said. (godang)