TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry is drafting a ministerial regulation that allows regional shareholding through province-owned companies (BUMD) at a maximum of ten percent.
"Shares for regions are 10 percent at maximum," said Susyanto, the ministry's chief of legal bureau, on Monday. The regulation is aimed at restricting private ownership seeking shares by entering BUMDs.
The regulation is still being discussed and will be signed in the near future, while ministerial regulation about the management of oil and gas working areas has been signed.
Susyanto said contractors must abide by the regulation, and that the absence of this regulation would enable private parties to gain shares of oil and gas blocks through BUMD.
"The regulation that regions can own shares of 10 percent was not effective because many private parties were entering [through BUMDs]. Don't let this happen again," said Susyanto.