Court abolishes Indonesian energy regulator

摘要

Current contracts and future investments in Indonesia are at risk after the nation's upstream regulator, BPMigas, was abolished in an unexpected court ruling. Indonesia's Constitutional Court ruled that the functions of the industry watchdog - responsible for awarding and overseeing production sharing contracts (PSCs) - were unconstitutional following a judicial review. But suspicions that the decision was politically motivated have started to gain traction. The resulting regulatory uncertainty jeopardises the nation's ongoing attempts to lift its crude production, will likely deter new investment and negatively affect expiring concessions, ratings agency Moody's said.