Fuel reserves, the Head of BPH Migas: In Act Already Clear But Not Yet Implemented

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tempo2Jakarta – Talk about the downstream oil and gas infrastructure, particularly fuel oil (BBM) where storage would be something very important in order to maintain energy security.

Head of the Regulatory Agency for Upstream Oil and Gas (BPH Migas) Andy Noorsaman Sommeng, saying that the future of oil remains high resilience of infrastructure such as the construction of storage should be built first. This does not mean the refinery is not important.

“Both (storage and refinery) is important. But we have to look at the financial condition of the state. If the future resilience of the oil can be high, meaning we had to get up storage in advance, since the provision could be imported, can cultivate. But it should be known that before processing storage needed to store its crude. Then, after being processed also need storage for their products. So judging from the financial side and the urgency we need fast then build storage telebih first, “said Andy Noorsaman Sommeng, Monday (21/09/2015) in Jakarta.

Related who built, Andy continued that in the Oil and Gas Law No. 22 of 2001 has opened the door wide. Therefore, should not the government, should not single entities but also other business entities. Especially in Indonesia has plenty of storage entry of foreign firms in the country. Examples are PT. Oil Tanking.

“Only he is not effective because of the provisions in this country there are many overlapping and hampers. That is why the Minister of Finance Mr. Bambang Brodjonegoro will take care of these problems (the provisions of which inhibit),” he concluded.

Andy added, Oil and Gas Law No. 22 of 2001 was clear. Starting from the supply, processing, storage, transportation and commerce. Only the problem of the structure of the domestic market has not been clear. “In law already clear but its implementation has not been clear,” he explained.

Actually when talking about activities in the downstream anyone can invest. Whether it is the State Owned Enterprises (BUMN), Regional-Owned Enterprises (enterprises), national private and cooperative. “If it does not exist in downstream directly related to konstutusi Article 33. If it downstream of the right merchandise, no longer existing in the belly of the earth, instead of our natural resources,” he said.