Abstract
Since the first drill that struck oil in 1884, the extractive industry has been the key contributor to the Indonesian economy. Being blessed with natural resources, the Indonesian Constitution strictly mandates these resources to be used for the welfare of the people with the Government acting as the representative of the people, placed as the guardian of these natural resources. The regulatory regimes over the two main extractive sectors, oil and gas as well as minerals and coal, have experienced changes over the years. These changes correspond to the political changes that the country was experiencing, from being a newly independent nation to a reformed democracy with a focus of decentralising power.
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Notes
- 1.
Tengku Nathan Machmud, The Indonesian Production Sharing Contract: An Investor’s Perspective, p. 39.
- 2.
House of Representative Oil and Gas Law Draft of September 2018, as referred to in Arvirianty 2019.
- 3.
House of Representative Oil and Gas Law Draft of 2015.
- 4.
Article 63 (2), Chapter IV, Oil and Gas Law Draft, September 2018.
- 5.
Article 63 (3), Chapter IV, Oil and Gas Law Draft, September 2018.
- 6.
House of Representative Oil and Gas Law Draft of 2015, “jumlah tertentu dari hasil total produksi komersial yang disisihkan secara khusus di luar bagian Pemerintah Pusat dan kontraktor”, translated as “a certain amount of the total commercial value of the production will be set aside outside of Government and Contractor’s take”.
- 7.
- 8.
- 9.
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Mezaya, R., Anggoro, Y., Jaluakbar, W., Rahayu, W.A. (2021). Overview of Extractive Resources Management in Indonesia. In: Pereira, E.G., Spencer, R., Moses, J.W. (eds) Sovereign Wealth Funds, Local Content Policies and CSR. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-56092-8_4
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