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Abstract

The Indonesian Constitutional Court abruptly annulled provisions regarding the function of BP Migas as state representative in managing upstream oil and gas operations in Indonesia, declaring it unconstitutional. Apparently, the Court was convinced that exercising absolute state control over hydrocarbon operations would give the utmost benefit to the people. This research argues that in achieving such goals, a state must be able to create strong administrative infrastructure and regulatory regime capable of controlling and supervising hydrocarbon operations in accordance with both national and international oil fields. Using a comparative study method with secondary data collection, this research observes Norway’s, Mexico’s, Malaysia’s, and Russia’s experiences as its underlying methodology. It examines the Court’s interpretation of “control” and “ownership” over hydrocarbon operations and provides possible solutions for the most effective and suitable institutional design for BP Migas’ replacement. Finally, it concludes that to fulfill the constitutional mandate, the government’s ability to manage oil and gas sector depends on how much it is willing to consistently: (i) implement good corporate governance among related stakeholders so as to lessen political interference in the decision-making process, and (ii) maintain the balance of ex ante procedures and the post ante monitoring system in the adopted institutional model.

Bahasa Abstract

Mahkamah Konstitusi Republik Indonesia secara tiba-tiba membatalkan ketentuan-ketentuan mengenai fungsi BP Migas sebagai perwakilan negara dalam mengelola kegiatan hulu migas di Indonesia dan menyatakan BP Migas inkonstitusional. Mahkamah Konstitusi teryakini bahwa dengan melaksanakan kontrol penuh terhadap operasi-operasi migas akan memberikan manfaat yang sebesar-besarnya bagi kehidupan rakyat. Penelitian ini akan membuktikan bahwa untuk mencapai tujuan tersebut, sebuah negara harus mampu menciptakan infrastruktur administratif dan rezim perundang-undangan yang kuat untuk mengendalikan dan mengawasi operasi-operasi migas sesuai dengan praktik-praktik migas nasional dan internasional. Dengan menggunakan data-data sekunder yang diambil untuk studi perbandingan, penelitian ini mengamati pengalaman-pengalaman dari beberapa negara seperti Norwegia, Mexico, Malaysia dan Rusia sebagai dasar metodologi penelitian. Penelitian ini menguji interpretasi Mahkamah Konstitusi atas‘kontrol’ dan ‘kepemilikan’ operasi-operasi migas dan memberikan solusi untuk menentukan model institusi yang paling efektifdan cocok sebagai pengganti BP Migas. Akhirnya, penelitian ini berkesimpulan bahwa untuk memenuhi mandat konstitusi, kemampuan pemerintah untuk mengelola sektor migas bergantung pada keinginan mereka untuk: (i) mengimplementasi good corporate governance diantara para pemegang kepentingan, mengurangi campur tangan politik dalam proses pengambilan keputusan, dan (ii) memelihara keseimbangan prosedur-prosedur ex ante dan sistem pengawasan post ante.

References

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