Effectiveness of Law of the Republic of Indonesia Number 11 of 2020 on Job Creation towards Oil and Gas Downstream Business Supervision Implementation in Indonesia

Abstract

. Oil and gas are strategic non-renewable natural resources whose management needs to be carried out optimally to be utilized for the welfare of the people. This article analyses about the regulation and implementation of Job Creation Law especially on oil and gas downstream business supervision. The government hands over the implementation of activities in the downstream oil and gas sector to the Oil and Gas Downstream Business Supervision which called as Downstream Oil and Gas Regulatory Body, to supervise the implementation of the supply and distribution of Oil and the transportation of Natural Gas through pipes so that the availability and distribution of Oil can be guaranteed throughout the Republic of Indonesia and increase the utilization of Natural Gas in domestic. The Job Creation Law’s birth is expected to support the strengthening of the supervisory function for downstream Oil and Gas business activities. The duties and functions of the Oil and Gas Downstream Business Supervision have not been regulated in the Job Creation Law, meaning that the implementation of supervision of downstream oil and gas business activities still refers to Law No. 22 of 2001 and its implementing regulations related to the duties, functions and organizational structure of downstream oil and gas regulatory agency. Several regulatory changes in the Oil and Gas sector are required to support the duties and functions of downstream oil and gas regulatory agency, which need to be regulated in the Job Creation Law, including several provisions regarding LNG and CNG, Representative Offices, and Public Service Bodies and Dispute Resolution.