ESDM to Conduct Joint Inspection on Oil and Gas Companies

Alleged Violations Prompt Investigation

The Ministry of Energy and Mineral Resources (ESDM) has announced plans to conduct a joint inspection with relevant parties regarding alleged violations by two major oil and gas companies operating in Indonesia. The investigation follows a formal complaint received by the House of Representatives (DPR) concerning PT Jadestone Energy and PT PetroChina International Jabung Ltd.

Specific Allegations Against Companies

The allegations against PT Jadestone Energy center on the installation of a gas pipeline that reportedly violates local regulations regarding the minimum distance from roads and drainage channels. According to Bambang Patijaya, Chairman of DPR's Commission XII, the pipeline was installed too close to the road body and drainage, contradicting West Jabung Regency regulations that require a minimum distance of 15 meters from the boundary wall or safety limit between the road and drainage.

Additionally, there are concerns about unresolved land compensation issues, with some landowners allegedly not receiving proper compensation despite the pipeline being installed. This has led to community dissatisfaction and prompted official scrutiny.

PetroChina Faces Separate Allegations

PT PetroChina International Jabung Ltd is facing allegations related to potential environmental issues. Preliminary evidence suggests the presence of material resembling crude oil in the vicinity of their operational area. Dirjen Migas Laode Sulaeman acknowledged having seen photographs showing black material that appears similar to crude oil, stating that such waste would be inappropriate for an international company like PetroChina.

Investigation Process and Potential Consequences

Laode Sulaeman emphasized that the joint inspection will involve multiple stakeholders, including the companies involved, local authorities, and relevant government agencies. This comprehensive approach aims to verify the allegations through on-site examination and gather detailed information about the reported violations. If the inspection confirms the alleged breaches, the companies could face administrative sanctions and penalties as per Indonesian regulations.

Regulatory Framework and Compliance

The ESDM's actions underscore Indonesia's commitment to enforcing environmental and operational regulations within the oil and gas sector. The ministry has made it clear that any confirmed violations will be addressed according to existing laws and regulations, potentially setting a precedent for stricter compliance monitoring in the industry.