PRESS RELEASE: IPA Deeply Concerned on Criminalization of Corporate's Business Decision
JAKARTA, 10th May 2013-This week we have seen the local court's guilty verdict on Chevron's Bioremediation case involving their 2 contractors.
IPA is deeply concerned on the impact and ramification of such legal judgment and that this is a precedent, that will affect not only the continuity of oil and gas operations, but also on sustainability of future investment in Indonesia.
Oil and Gas sector works on the basis of Production Sharing Contract (PSC), a contract sanctioned by the 2001 Oil and Gas law as a legal framework to conduct petroleum operations defined in said PSC, including legal mechanism to handle potential disputes. The oil and gas industry is a highly regulated sector. Each of its activities is based on standard review and approval by SKKMIGAS and State agencies and regularly audited by government auditors.
IPA, and all its members, are committed to operating at highest ethics, integrity and compliance standards, and in accordance with the terms of PSC. IPA promotes implementation of good corporate governance, not only within oil and gas sector, but also in wider industry in Indonesia.