State Relationship with Private Legal Entities on Oil and Natural Gas Management in Indonesia

Abstract

Indonesia has Undang-Undang Dasar Negara Republik Indonesia 1945 (UUD NRI 1945), Chapter 33 (3) UUD NRI 1945 give a mandate to the state that is equipped with the right to control the state as an instrument to achieve one of the highest goals of establishment Negara Kesatuan Republik Indonesia (NKRI), that is: promote the general welfare. The state represented by BP Oil and gas and then SKK Oil and gas, is in an unequal position with private legal entities in the upstream oil and gas business. The concept of the relationship between the state and private legal entities in the management of oil and gas is deemed by the MK to be inappropriate or contrary to the meaning Chapter 33 (3) UUD NRI 1945, which causes the lack of realization of oil and gas management for the greatest prosperity of the people. Management of oil and gas resources that are not in line or contrary to meaning Chapter 33 (3) UUD NRI 1945 can cause the goal of the greatest prosperity of the people not to be achieved. In the management so far, it is difficult to realize the nature of the constitutional management of oil and gas resources, this occurs because the Government of Indonesia as the representative of the state is apparently unable to maintain state sovereignty and adequate state control rights in the presence of foreign contractors involved in the management of oil and natural gas resources. through cooperation contracts due to ignoring priorities to government agencies such as independent BUMN. BUMN must dominate the management of oil and gas as strategic natural wealth in Indonesia, so that state sovereignty and the right to control the state can be used for the greatest prosperity of the people without third party intervention.