Policy & Regulation

BPMigas breakup leaves questions unanswered

It has been two weeks since the Indonesian Constitutional Court ordered upstream regulator BPMigas to be dissolved, and questions regarding the state of the country’s regulatory regime remain It has been two weeks since the Indonesian Constitutional Court ordered upstream regulator BPMigas to be dissolved, and questions regarding the state of the country’s regulatory regime remain.
By James Burbridge 27 November 2012 0 14534
A gas transmitting station in Banten province. Indonesia cannot afford capital flight from its oil and gas industry. (PA)

BPMigas was created in 2001 as part of the Oil and Gas Law 22/2001 as a way to divorce state-owned oil and gas company Pertamina from its duties as an upstream regulator. The step was widely hailed as a move towards a more liberalised energy sector.

Some 10 years later, however, the agency is no more. Indonesia’s Constitutional Court ruled on 13 November that the office be immediately disbanded and its duties handed over to the Ministry of Energy and Mineral Resources (MEMR) until a new...