Urusan Peraturan

Urusan Peraturan

Chairman: Debbie Chastity (Conocophillips)

COMMITTEE MEMBERS

2016 Key Issues & Goals

Draft Oil & Gas Law

• Key Issues:
  • Several key issues in the draft Oil & Gas Law remain outstanding and will need to be resolved between IPA and the Government. Chief among them are issues relating to the Upstream Business License, role of MEMR & BUMN-K, transition provision, Aggregator Business Enterprise, fiscal terms and incentives, privileges to State Owned Company, protection against criminalization, clarity on upstream vs. downstream, Contractors’ production entitlement and unconventional resources.
• Goals:
  • The RAC will continue its supervisory role over the Task Force as well as actively participated in the drafting and discussion of the draft Oil & Gas Law with the Government– it is important to maintain the continuation of ESDM to be the primary author of the draft Oil & Gas Law; ØRAC and the Task Force will also be the primary interface on any discussion relating to the draft Oil & Gas Law with the DPR.

PBI 17 on Utilization of IDR Currency

• Key Issues:
  • Recent clarification issued by SKK Migas on Category 3 contracts still require the use of IDR for the payment even though the quotation for goods/services can be in USD.
• Goals:
  • F&T and SIC Committees are the owner of this issue and RAC will continue to be the primary support in their discussion with SKK Migas, ESDM and BI in their effort to mitigate any impact from the issuance of the above clarification from SKK Migas.

Draft Presidential Regulation on Gas Management

• Key Issues:
  • One of the key issues in the draft regulation is the introduction of Gas Aggregator(s) (GA) who will be given exclusive rights to buy gas from domestic upstream producers or import the LNG and sell it to the end users and export any excess not absorbed domestically. The GA will also be tasked with building and operating gas infrastructure that the upstream producers or gas users must use to deliver the gas. The GA also has the rights to take over existing Gas Sale Agreements (GSA) that the existing buyers have with the producers or other traders. The proposed regulation will also regulate the upstream and the downstream gas price which will be set by the Minister.
• Goals:
  • RAC will continue to be the primary support to the LNG & Gas Committee in its work and discussion relating to the proposed draft Presidential Regulation on Gas Management.

Proposed Revocation or Revision to GR 79

• Key Issues:
  • The implementation of GR 79 created a number of new regulations issued (mainly) by the Ministry of Finance which are detrimental to the oil and gas investment environment (e.g.  LBT, VAT);
  • GR 79 applicability to existing PSC also created disputes between SKK Migas and the Contractors due to several provisions within GR 79 contradicts the terms of the existing PSC.
• Goals:
  • RAC will continue to lead the discussion on possible revisions or revocation of GR 79 with the Presidential Staff Office (and other Government institutions) with the support mainly from the F&T and LNG & Gas Committees.

  PTK 007 Related Issues

• Key Issues:
  • One of the main issues relating to the current PTK 007 is with regard to the ‘right to audit’ by SKK Migas to the vendors where non-compliance by vendors will lead to a financial sanction to the Contractors in the form of non cost recovery of the relevant contract value;
  • SKK Migas is currently working on Book 4 as further revision to PTK 007.
• Goals:
  • RAC will continue to be the primary support to the SIC Committee in their discussion with SKK Migas in order to achieve a workable solution for both SKK Migas and the Contractors on the current issue as well as in their discussion on Book 4 of PTK 007.

Investment Climate Improvement Advocacy

• RAC will be the primary support to the Board in developing a mechanism to knit all the issues together and finding a way to advocate across the totality of all those issues to the key stakeholders with the aim to improve Indonesia’s oil and gas investment climate;
• RAC will be the primary custodian of IPA Key Issues List and will actively engage the IPA Executive Director and each Board Liaison for their support to keep the Key Issues List up to date;
• RAC will continue to perform an active advocacy role in educating key stakeholders with respect to IPA’s key regulatory issues;
• RAC will also continue to play an active role in supporting other committees on the review and discussion of new and existing regulations which impact the oil and gas industry.

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