The Politics of Legal Management of Upstream Sector of Oil and Gas in the Production Sharing Contracts by Using Gross Split Systems

International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue XI, November 2018 | ISSN 2454–6186

The Politics of Legal Management of Upstream Sector of Oil and Gas in the Production Sharing Contracts by Using Gross Split Systems

Riana Wulandari Ananto1, Albertus Sentot Sudarwanto2, Yudho Taruno Muryanto3

1Master Program Of Law, Sebelas Maret University Surakarta, Surakarta, Indonesia
2,3Lecturer Master Program of Law Sebelas Maret University, Surakarta, Indonesia
Corresponding Author: Riana Wulandari Ananto

Abstract:- Legal politics in general can be formulated as a series of concepts and principles that form the outline and basis of the plan in the implementation of a job, leadership and ways of acting in the field of law. The legal politics of oil and gas management in Indonesia in its development aims to perfect an existing policy. Oil and gas management contracts in Indonesia have been amended several times, from the changes in the objectives of the parties in this case the government and Contractors oriented to business profits have not been fully realized, seen from each party experiencing losses, For this reason the Government issued a policy to enhance the existing policies by issuing option a new upstream oil and gas business that is a production sharing contract using the gross split system regulated in the Regulation of the Minister of Energy of Mineral Resources Number 8 of 2017. The hope of the goals of the parties that are oriented to business profits in contractual can be realized, especially for the government can achieve the ideals in accordance with mandated by the 1945 Constitution of the Republic of Indonesia. is the size of the return on investment and the profits that will be received by the contractor, very much depends on how efficient the contractor is in running upstream oil and gas operations. The more efficient the contractor, the return on investment and optimal profit will be obtained.

Key words: Legal politics, upstream business activities, production sharing contract, gross split.

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