State Control Over the Authority to Manage Oil and Gas Natural Resources Before and After the Enactment of the Job Creation Law

Abstract

Oil and natural gas resources are controlled by the state. The purpose of this state control over mining activities is to ensure that such national wealth is utilized to the greatest extent possible for the prosperity of all the people of Indonesia. The current legal framework for oil and gas mining activities is governed by Law No. 22 of 2001 concerning Oil and Gas (the "Oil and Gas Law"), which serves as the legal basis for the exploration and exploitation of these natural resources, both onshore and offshorenotably under Article 39, paragraph 1, letter (b) of said Law. Furthermore, the enactment of the Job Creation Law (Law No. 11 of 2020) also addresses matters pertaining to oil and gas mining. This study employs a legal research methodology. As defined by Peter Mahmud Marzuki, legal research is normative-juridical in nature. This research examines the regulations concerning state control over oil and gas mining both before and after the enactment of the Oil and Gas Lawas well as the regulatory framework for the sector following the passage of the Job Creation Law in 2020. The objective is to ensure that oil and gas exploration and exploitation activities, which are conducted by the government in a strict and selective manner, fulfill key goals, including the promotion of public prosperity and the generation of state revenue through taxes levied on mining operations.