Indonesian Government Establishes SKSPMIGAS

The Government of Indonesia has established an Interim Working Unit for Upstream Oil and Gas Business Activities (SKSPMIGAS) to take over duties and functions, which have been previously conducted by the Executive Agency for Upstream Oil and Gas Business Activities (BPMIGAS).

This working unit is established by the Decision of Minister of Energy and Mineral Resources (EMR) No. 3135K/08/MEM/2012 on the Taking Over of Duties, Functions, and Organization in the Implementation of Upstream Oil and Gas Business Activities and Decision No. 3136K/73/MEM/2012 on the Assignment of BPMIGAS Personnel. Both ministerial decisions were issued in Jakarta, 13 November 2012.

“By the issuance of those two ministerial decisions, all duties formerly performed by BPMIGAS will remain in effect,” said Deputy Minister of EMR, Rudi Rubiandini.

Fundamental provision governed under the Decision of Minister of EMR No. 3135K/08/MEM/2012 is to assign the duties, functions, and organization of BPMIGAS to SKSPMIGAS. This ministerial decision also stipulates that SKSPMIGAS is responsible to the Minister of EMR.

Decision No.3136K/73/MEM/2012 stipulates that the position of BPMIGAS vice chairman and deputies is assigned to SKSPMIGAS. All officials and employees of BPMIGAS out of those positions are assigned to SKSPMIGAS under the same position.

The two ministerial decisions are the follow up of the issuance of the Presidential Regulation No. 95 of 2012 dated 13 November 2012. This presidential regulation governs three major points: first, the implementation of duties, functions, and organization of BPMIGAS are assigned to Ministry of EMR; second, any contracts under Cooperation Contract (KKKS) scheme shall remain in force until the expiration of the contracts; and, third, all activities in progress handled by BPMIGAS shall be taken over by the Ministry of EMR.

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LNG World News Staff, November 20, 2012; Image: SKSPMIGAS