Questioning The Existence of BPH Migas

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umilagiJakarta – Production of crude oil in the State has decreased from year to year.One of these causes is because the oil wells in Indonesia is quite old andpetroleum production in the country has reached a significant decline.

Secretary of BPH MIGAS, Umi Asngadah explained in 2015, the Government together with the House of Representatives had oil lifting sets the Earth by 900,000 barrels per day (bpd) and the possibility of lifting the target predictedonly about 818,000 bpd. While the needs of domestic oil reached an averageof 1.3 thousand barrels per day.

“It can be concluded that there is a deficit in domestic oil production”, said Umi Asngadah when met at his office on Wednesday (01/07/2015).

Therefore, said Umi, to meet the needs of fuel oil (BBM) in the country, the Government must import fuel andcrude oil. Given oil as a strategic commodity that should be controlled by considering the interest of the people,hence the need to control (regulation) through an independent body that can regulate the commodity.

According to him, setting up a reliable and professional is needed, and currently have no BPH Migas, which is an independent institution, given the operational costs are met from the contributions of business entities being regulated. In fact, continued Umi, 86 percent acceptance Enterprises dues paid into the state treasury as tax state revenue (non-tax).

“The institute There should be used as” forerunner “Oil and Gas Sector Regulator function representing the threeinterests, namely the government, community, and business entities. The Regulatory Body should ideally take an active role to build national energy security”, said Umi.