Index

 24 September 2007

 
Court asked to reject challenge to oil law
Jakarta

The government urged the Constitutional Court on Wednesday to reject a petition brought by a number of members of the House of Representatives to have an article of the 2004 Oil and Gas Law struck down.

Addressing the court Wednesday, Energy and Mineral Resources Minister Purnomo Yusgiantoro argued that the legal standing of the plaintiffs in challenging the legislation was questionable as they positioned themselves both as ordinary citizens and as legislators.

The government said the petitioners' challenge to the article was inconsistent as it was they themselves, in their capacities as House members, who had enacted the law.

"The petitioners are being inconsistent and ambiguous. On the one hand, they were involved in drafting and passing the law, while on the other hand, they are now questioning the legislation they have enacted," Purnomo said.

In their petition, the legislators are urging the court to strike down article 11(2) of the new legislation on the grounds that it violates their legislative rights as House members as it allows the government to enter into oil and gas production sharing contracts without the need for prior consultation with the legislature.

Under the article in question, the government only needs to submit a written report to the House on each production sharing contract that it enters into.

The petitioners claim that the impugned article violates the Constitution, which vests legislative power in the House of Representatives.

However, the government has challenged the legal standing of the petitioners on the grounds that their rights have not been prejudiced, arguing that the right to legislate is an institutional rather than an individual right.

The government has also objected to the petitioners argument that a production sharing contract is actually an "international agreement".

"We believe that the term employed by the Constitution is treaty, with the subjects involved being states and international organizations. We must differentiate a treaty from other forms of agreement under the civil law, such as contracts," Purnomo said.

Under the Constitution, an international treaty must be ratified by the House.

Court President Jimly Asshidiqie adjourned the hearing to afford an opportunity to the petitioners to present expert witnesses.

This is the second time that the Oil and Gas Law, which liberalizes the oil and gas sector, has been challenged in the Constitutional Court, although it is the first time legislators have been involved.

In the first case, the court ruled that the legislation was constitutional, but asked the government to make some minor revisions to articles 12, 22 and 28 to avoid misinterpretation.

[Main Page] [Client Needs] [Country Focus] [Financial Services]
[Confidentiality] [Management Team] [Information System]
[Site Map] [Contact Us]

 

PT Corfina Mitrakreasi
Menara Kebon Sirih 21st Floor, Jl. Kebon Sirih 17-19
Jakarta 1034, INDONESIA
Tel:(62-21) 392-2401  |  Fax:(62-21) 392-2403
e-mail: marketing@corfina.com