Jakarta: Jittery energy majors operating in Indonesia have warned Jakarta not to meddle too much with the Oil and Gas Law or else face losing investors. A recent court ruling has found elements of the 2001 Law on Oil and Gas as unconstitutional. This has seen the country’s regulator BPMigas disbanded and comes at a time where the government is making much noise about boosting output for state-run Pertamina.
However, the Indonesian Petroleum Association, which groups 52 companies in the oil and gas sector representing about 90% of total production, has pleaded to keep regulation changes to a minimum, pointing out that investments in oil and gas developments in Indonesia are already risky enough. [06/12/12]