SP SKK Oil and Gas Cooperate with KSPN Encourage Revision of Oil and Gas Law

By : Hariyanto And Aldo Bella Putra | Monday, October 23 2017 - 23:00 IWST

Migas Ilustrasi
Migas Ilustrasi

INDUSTRY.co.id - Jakarta - The Special Forces Unit of Upstream Oil and Gas Business Unit (SP SKK Oil and Gas) is partnering with the National Trade Unions Confederation (KSPN) to encourage the revision of the Oil and Gas Law which is still under discussion by the House of Representatives (DPR) ) for approximately five years.

"We ask that KSPN friends and other elements from union organizations, student organizations, community organizations to support us in encouraging the revision of oil and gas that has been hanging around for five years from 2012 until now (2017) ," said Bambang Dwi Djanuarto, Executive of Workers Union SKK Oil and Gas in a press release in Jakarta, Monday (23/10/2017).

Bambang said the revision of the Oil and Gas Law is considered important because the current situation of Indonesia is in a state of energy crisis due to the absence of certainty of law in the context of upstream oil and gas governance to date.

"One of the factors triggering the low investment of upstream oil and gas in the last 5 years is the legal uncertainty, especially concerning the uncertainty of the completion of the Revision of Oil and Gas Law which has been discussed since 2012 until 2017 is not completed. We together with KSPN requested the Government and Parliament to immediately complete the mandate of the Constitutional Court establishing a permanent institution or business entity that can carry out the exploitation of Indonesia's natural resources to manage upstream oil and gas," he explained.

Indonesia is currently in an energy crisis, he added, as Indonesia needs 1.6 million barrels of oil fuel consumption per day while crude oil production in the range of 800,000 barrels per day and oil refinery capacity of Indonesia is only 1 million barrels per day, meaning that Indonesia should import around 1.5 million barrels per day of crude oil and fuel oil.

Bambang emphasized that the crisis condition of Energy is compounded by the lack of legal certainty in the context of upstream oil and gas management, "especially since SKK is now only temporary.

"We hope that the revision of oil and gas can be completed soon so investment will be better and can encourage more investment so that production is increasing, exploration activities increase so that oil and gas reserves in Indonesia become stronger," he hoped.

He stated that in addition to the Upstream Oil and Gas Institution, which is also the principle in the Revision of Oil and Gas Law, is to include the right of workers of SKK Oil and Gas in the transitional passage. "Currently, in the transition section of the draft Revision of the Law on Oil and gas Law of the House of Representatives, there is no mention of the rights of workers of SKK Oil and Gas. We request that the rights of workers of SKK Oil and Gas to be re-employed directly in institutions or permanent business entities are included in the draft Revision of Oil and Gas Law to be approved by Parliament and Government, "he said.

Meanwhile, Deputy Secretary KSPN center as well as Chairman of DPW KSPN West Java Edi Antara said, warmly welcomed the desire of SKK oil and gas considering the welfare of the workers into a joint responsibility that must be fought especially by the union.

"Yes, we strongly respond positively to what Mr. Bmbang from SKK of oil and gas, in essence the union is fighting for the welfare of the members and the family or the people of Indonesia because in essence the members of KSPN are also the same Indonesian people members or maybe employees of SKK oil and gas also the people of Indonesia," said Edi.

As a step of cooperation, Edi admitted in the near future will soon form a special team to review the revision of oil and gas and determine the steps to be taken later.

"So in this struggle in the near future I am still waiting for what will we do together to fight for what was submitted by SKK oil and gas through cooperation or through a confederation," he said.

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