On 13 November 2012, the Constitutional Court (Mahkamah On 13
November 2012, the Constitutional Court (Mahkamah Konstitusi or
"MK") dissolved BP Migas through
Decision No. 26/PUU-X/2012 on the judicial review of the oil and
Gas Law (Law No. 22 of 2001). In response, the President issued
Presidential Regulation No. 95 of 2012 on the Transfer of the
Duties and Functions of the Upstream Oil and Gas Activity Agency
(BP Migas) ("Regulation 95"). Following
the issuance of Regulation 95, the Minister of Energy and Mineral
Resources ("ESDM") issued Decree No.
3135K/08/MEM/2012 regarding the Transfer of the Duties, Functions
and Organizational Structure of the Upstream Oil and Gas Activity
Agency ("Decree 3135"). Regulation 95
and Decree 3135 govern the employees of BP Migas, BP Migas'
counterparts under Production Sharing Contracts (PSCs) and the PSCs
themselves, and BP Migas' duties are now assigned to the
To follow up on the above, the President recently issued
Presidential Regulation No. 9 of 2013 regarding The Management of
Upstream Oil and Gas Activities ("Regulation
9"). Regulation 9 establishes a government unit
called The Special Work Unit for Upstream Oil and Gas Activities
(Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas
Bumi or "SKK Migas") which assumes BP
Migas' duties until the issuance of the new oil and gas
The assets of BP Migas will be utilized by SKK Migas. The same
applies to the employees, ie the BP Migas employees now work for
Although Regulation 9 is silent on BP Migas' counterparts
under Production Sharing Contracts or PSCs, Regulation 95 states
that all contracts signed by BP Migas will remain valid until their
date of expiry. To control, supervise and evaluate work done by SKK
Migas, Regulation 9 establishes a Supervisory Commission (Komisi
Pengawas) led by the Minister of ESDM as its Chairman.
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