Mahfud MD: BP Migas Narrated Dismissed from Court Decision

Chairman of the Constitutional Court (MK) Mahfud MD

JAKARTA - Chairman of the Constitutional Court (MK) Mahfud MD said Implementing Agency Oil and Gas (BP Migas) disbanded since the judge read the verdict of Act No. 22 of 2001 on Oil and Gas.

"Since at 11.00 am, Tuesday (13/11/2012) disbanded and all regulatory functions moved to the Ministry of Energy," said Mahfud, here on Tuesday.

For business contracts in progress and made with BP Migas, said Mahfud, valid until the end of contract. "Or in effect until a new agreement was held," said Mahfud.

As is known, the Constitutional Court decided that section governs the duties and functions of the Executive Agency for Oil and Gas (BP Migas) is regulated in Law Number 22 of 2001 on Oil and Gas contrary to the 1945 Constitution and has no legal binding.

"The functions and duties of the Executive Agency of Oil and Gas implemented by the Government, represented by the Ministry concerned, until the enactment of the new law governing it," said Chief Justice Mahfud MD, when reading the verdict testing oil and gas law on Tuesday.

The Court stated the phrase "by the Executive Agency" in Article 11 paragraph (1), the phrase "through the Executive Agency" in Article 20 paragraph (3), the phrase "based on consideration of the Executing Agency and" in Article 21 paragraph (1), the phrase "Board Implementing and "in Article 49 of the Gas Act 1945 and contrary to the Constitution has no binding legal effect.

"The whole thing is related to the Implementing Agency in Oil and Gas Company Act and contrary to the 1945 Constitution has no binding legal force," said Mahfud.

The Court also stated Article 1 paragraph 23, Article 4 paragraph (3), Article 41 paragraph (2), Article 44, Article 45, Article 48 paragraph (1), Article 59 sub-paragraph a, of Article 61, and Article 63 against the Oil and Gas Law 1945 Constitution and have no binding legal effect.

Subject to the decision of the Constitutional Court

In response to the decision of the Constitutional Court, the Coordinating Minister for Economic Affairs (Minister) Hatta Rajasa said, "The decision of the Constitutional Court asked the Ministry of Energy to continue to perform the functions that existed at BP Migas, so that the inherent perminyakaan industry should still be running, therefore meeting had decided not to be a vacuum, because there must be legal certainty. "

Hatta said the government would have to submit to the decision of the Court because the Court's decision is final and binding binding, therefore Coordinating Minister Hatta Rajasa further, the Court's decision could be the basis of our legal framework to remove the product immediately the law so that all functions can continue to run in under the Ministry of Energy.

"The important thing for us is, there can be no doubt, there should be no legal vacuum, all must go, these functions have to keep going, because the investment climate we have to keep our guard, we are committed to continuously improving our production, our oil and gas and managing our upstream sector, exploration and production in accordance with the goals and objectives that have been defined, "added Minister.

Decision of the Constitutional Court did not affect the Minister for contracts that have been made. "Everything is still running, there is not anything that resulted in doubts, companies which still runs as it should, still producing, still legal, because there is not anything cause they can not be stopped and stalled efforts to continue the exploration and production," Hatta added.

In line with the Minister of Economy, Minister of Energy and Mineral Resources stated, "All the functions available on the BP Migas returned to the Ministry of Energy and Mineral Resources, so the function. So everything works as before. All existing contracts to run as usual, I'm Sharing Contract calm, as usual, only the functions that control BP Migas just going back to the Minister of Energy and Mineral Resources ".

Court Decision Affects Oil and Gas Contract Status

Decision of the Constitutional Court (MK) that the presence of BP Migas unconstitutional taken lightly Head of BP Migas, R. Priyono. Priyono, where BP Migas is a mandate of reform set out in the Gas Act number 20 of 2001.

"If you want to return to the pre-reform, yes please," said Priyono told reporters on Tuesday (13/11), in the complex of the MPR / DPR, Senayan Jakarta.

Court decision could have an impact on a variety of foreign work contracts in the mining sector. Priyono stated investment in oil and gas sector could be deemed invalid illegal alias. "The impact of the signed contract to BP Migas is not legal," said Priyono.

When asked who the party can change the position of  BP Migas in various mining contracts, Priyono said they did not know. Priyono invited reporters to the question submitted to the Minister of Energy and Mineral Resources, Wacik.

In the same place Wacik claimed to have read the whole decision of the Constitutional Court about BP Migas. Jero said the government has not been able to take decisions related to the Constitutional Court.

While a government will consider investing in the oil and gas sector that adds state finances. "We must examine all the possibilities for the interests of the country. We do not want to rush to speculate," said Jero. (Source: Kompas.com / www.esdm / republika.co.id)