REPUBLIKA.CO.ID, JAKARTA -- Commission VII member of House of Representatives (DPR), Kurtubi said the Law of Oil and Gas Number 22/2001 is contradict with the constitution. Members from faction of National Democrat Party stated the government has lowered its level to be parallel to the investor.

"The government must obey the contents of signed contract, even though the contract content at a later date is very detrimental to the state," he said recently in a National Seminar entitled 'Institutional of Constitutional Oil and Gas' at the Parliament Complex, Jakarta.

He assessed that unbundling principle which government adopted in accordance with what that should be taken. Kurtubi assessed oil and gas companies that were vertically integrated with moving from upstream to downstream proven to be more efficient than the unbundling model.

Kurtubi affirmed that besides it had cost the country financially, the law also had created a system of governance that was not efficient.

"The process of exploration investment to be very long and bureaucratic because of BP Migas as a contract signatory is not the holder of mining rights," he continued.

Besides, he said the law has also revoked the principle of Lex Specialist in national oil and gas industry. Kurtubi revealed the impact of the enactment of this law for 14 years has cost the country like crude oil production. It was very low and continued to fall.

Since the law of oil and gas, there was no discovery of the significantly new oil and gas reserves. Although geologically the potential of oil and gas resources were relatively still very large and world oil prices were relatively very high.

"New Refinery never been built because of the responsibility for fulfilling the needs of the fuel was no longer Pertamina, but the government," said Kurtubi.

As a solution, he asked the Oil and Gas Law Number 22/2001 should be replaced with the Law of Oil and Gas which constitutional for the sake of accelerating people's prosperity.

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