Just one out of three deputies approved by BP Migas

"Landep News"

The Indonesian Executive Agency for Upstream Oil and Gas body (BP Migas) is having a leadership problem which could affect Indonesian oil and gas production. It started by an appointment letter signed by the Indonesian Mineral Resource and Energy Minister to arbitrarily appoint three deputies (directors) to replace the old deputies.

The decree No. 1377 Year 2011 explained that the position of Operations Control will be held by Wibowo Suseno Wiryawan, originally Finance Control in the same agency. The position was held by Budi Indianto who offered to resign because he felt unable to meet the rigorous target oil production.

Just one out of three deputies approved by BP Migas

The position of Financial Control is held by Prof. Akhmad Syakhroza who previously served as Special Staff to the Minister of Energy and Mineral Resources while General Deputy position is held by John Widjonarko who was also came from the Ministry of Energy and Mineral Resources.

This decision however, is opposed by BP Migas because it is seen as lacking the input from the agency itself as mandated by the Government Regulation No. 42 of 2004. BP Migas argue that the regulation says that though the Minister has the authority to appoint deputies, the decision should be based on the agency advised.

BP Migas is of the opinion that the Ministry decree has a potential to conflict with the government regulation which is higher in hierarchy when it comes to enforcement.

Because of that the only position that was handed over was only for the General Deputy while for the other two BP Migas is awaiting further instruction from the President.

On the other hand, the Energy and Mineral Resources minister insisted to implement the decision and consider the decisions taken are in accordance with existing procedures and regulations. The Ministry of Energy and Mineral Resources claims to have received input from BP Migas as well as the Ministries own internal officer regarding the appointment of the three deputies,

This disagreement is likely to interfere with the performance of BP Migas amid the Government efforts to boost ready to sell crude oil production target. In State Budget 2011, the government set a target of lifting 970,000 barrels of oil per day.

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