Businesses Protest Energy Minister´s New Regulation

Thursday, 27 July 2017 , 12:00:00 WIB - Economy

President Joko Widodo (right) is seen giving instructions in a Plenary Cabinet Meeting that discussed the 2018 Draft Sate Budget, at the State Palace, Jakarta, Monday (24/7). (ANTARA)

JAKARTA, GRES.NEWS – Energy Businesses are protesting against the controversial Minister of Energy and Mineral Resources Regulation No. 42/2017 on Business Supervision on Activities in the Energy and Mineral Resources Sector.

They say, the regulation clashes with President Joko Widodo’s deregulation and bureaucracy simplfication efforts. "Minister Jonan should receive a warning from the President to revoke the regulation, which is upsetting businesses in the oil and gas, and electricity industries," said Anggawira, Chairma, Indonesian Young Entrepreneurs Association (HIPMI), to, Tuesday (25/7).

Anggawira revealed that this was not the first time Jonan issued a controversial regulation that hampers the government in meeting its goals in the energy sector. The Minister of Energy and Mineral Resources Regulation No. 42/2017, he says, has lengthened the list of interventions by the government against private energy businesses.

The regulation regulates shares ownership, interest transfers, and changes to directors and commissioners in private companies on grounds that the government wants to assure more effective guidance and monitoring to achieve the mandated visions and goals of the energy and mineral resources sector in the 1945 Constitution (UUD 1945).

"The question is, would the private sector be willing to be intervened that far," he said.

Anggawira said the government should not be involved in a private company’s micromanagement.
The cries have reached President Joko Widodo, who warned Jonan in the latest cabinet plenary meeting. The President warned all his ministers to never issue regulations without thorough considerations, especially regulations that that concern the business world.

"I ask all ministers to be careful in issuing regulations," he said, Jakarta, Monday (24/7).

Meanwhile, Vice Minister of Energy and Mineral Resources, Arcandra Tahar, said his ministry will evaluate the regulations it has issued, not excluding the Minister of Energy and Mineral Resources Regulation No. 42/2017.

"The Ministry of Energy and Mineral Resources will evaluate the regulations it has issued. There are a lot. We have issued 42-43 regulations. We will evaluate them all," Arcandra said, Jakarata, Monday (24/7). (dtc)