Jurnal Bestuur
Vol. 8, Issue 2, December, 2020
E-ISSN 2722-4708 P-ISSN 2302-3783
DOI: 10.20961/bestuur.43141
This work is licensed under a Creative Commons Attribution 4.0 International License (cc-by)

Gross Split Contract Framework Regulation on the Caring for People
Kirana Intaniasari
Faculty of Law, Universitas Sebelas Maret Surakarta, Indonesia
Email Coresponden: kiranaintaniasari1@gmail.com
Abstract

This study aims to determine the model of oil and gas governance in Indonesia in terms of the
interests of the State to protect natural resources that should be controlled for maximum use
for the prosperity of the people. This study is based on the results of normative legal studies
that are descriptive. The type of data used is secondary data obtained from literature study data
collection techniques, which are then analyzed by carrying out systematic interpretation of the
law. Systematic means, making a classification of written legal materials, to facilitate the work
of analysis and construction. The results of this study show that oil and gas management
arrangements began in the Dutch colonial period and continue to change with the times up to
now, specifically the regulation of upstream oil and gas. Upstream oil and gas management has
changed several times, namely the Concession system, the Contract of Work system,
Production Sharing Contract (PSC) and finally the Gross Split Production Sharing Contract.
The emergence of Gross Split aims to improve the PSC system and improve the efficiency and
effectiveness of oil and gas production sharing patterns. Even though Gross Split still has
weaknesses, but when compared to the previous system, Gross Split is more in line with the
country's goal of being as broad as possible for the people.
Keywords: Mining; Gross Split; Welfare State.
Abstrak

Penelitian ini bertujuan untuk mengetahui model tata kelola migas di Indonesia ditinjau dari
kepentingan Negara untuk melindungi sumber daya alam yang seharusnya dikuasai untuk
dipergunakan sebesar-besarnya demi kemakmuran rakyat. Kajian ini didasarkan atas hasil kajian
hukum normatif yang bersifat deskriptif. Jenis data yang digunakan berupa data sekunder yang
diperoleh teknik pengumpulan data studi pustaka, yang selanjutnya dianalisis dengan
melaksanakan penafsiran hukum secara sistematis. Sistematis berarti, membuat klasifikasi
terhadap bahan-bahan hukum tertulis tersebut, untuk memudahkan kerjaan analisa dan
konstruksi. Hasil dari kajian ini menunjukkan pengaturan pengelolaan migas dimulai pada masa
kolonial Belanda dan terus berubah mengikuti jaman hingga saat ini, khususnya pengaturan
mengenai hulu migas. Pengelolaan hulu migas sudah berubah beberapa kali, yaitu sistem
Konsesi, sistem Kontrak Karya, Production Sharing Contract (PSC) dan yang terakhir adalah
Kontrak Bagi Hasil Gross Split. Munculnya Gross Split bertujuan untuk memperbaiki sistem PSC
dan meningkatkan efisiensi serta efektifitas pola bagi hasil produksi migas. Walaupun Gross Split
masih ada kelemahan, tetapi jika dibandingkan dengan sistem sebelumnya, Gross Split lebih
sesuai dengan tujuan negara yaitu sebasar-besarnya untuk rakyat.

Kata Kunci: Pertambangan; Gross Split; Kesejahtraan Rakyat.

Gross Split Contract Framework...Kirana Intaniasari

Introduction
Indonesia is a country with a wealth of very abundant natural
resources. This wealth is a gift from the All-Powerful God who has a very
important role to create a just and prosperous Indonesian society. The
Constitution of the Unitary State of the Republic of Indonesia of 1945
(Constitution of 1945) stipulates in Article 33(2) that the State controls
the output divisions which are essential to the State and which control
the livelihoods of the people. What is clarified in paragraph (3) of
Article 33 is that the earth, water and natural resources contained
therein are controlled by the state and used for the greater prosperity of
the people. The article prescribes that the state's control of natural
resources must be fully for the people 's prosperity. (Rumok oy, Nike K.,
2016)
One rich resource in Indonesia is oil and gas (oil and gas).
Indonesia is undeniably very dependent on natural resources such as oil
and gas. Based on Pertamina data for 2013 , the total national demand
for petroleum was 77.00 million KL, while the capacity of domestic
refinery production was only 38.10 million KL, resulting in a deficit of
38.9 million KL or around 51 per cent in 2013 (Rachmad Hardadi, 2015).
Indonesia's high dependence on petroleum shows that petroleum energy
is vital and revampi the regulations regulating the management of oil
and gas in Indonesia are currently Law No. 22 of 2001 on Oil and Gas
(Oil and Gas Act). (Chandranegara Ibnu Sina, 2017)
In Decision No. 36 / Puu-X/2012 relating to Decision No. 002 /
PUU-I/2003 of 21 December 2014 concerning the testing of the Oil and
Gas Code, the Constitutional Court gave meaning in Article 33 of the
Republic of Indonesia 's Constitution of 1945 as to the principle of state
control in Article 33 of the Republic of Indonesia 's Constitution of 1945
The conception of state control is a public law term similar to the theory
of common sovereignty adhered to in the Republic of Indonesia
Constitution of 1945, in both the political and economic fields. In
understanding people's sovereignty, it is the people who are recognized
as the source, owner and at the same time the highest authority in the
life of the state, according to the doctrine of "the people, the peop le and
the people." It underlined from that decision that the people gave the
state the mandate to hold: (M. Ilham F Putuhena, 2015)
1. The policyprocedure.
2. Management steps the government's management role with the
authority to issue and revoke the reg istration, registration and
concession facilities.
3. Regulations, the regulatory role of the State shall be exercised by
the DPR and the Government by legislative authority, and by the
Executive.
4. Management, management role shall be exercised through t he
shareholding process and/or through the State as an institutional

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instrument. The government uses its power over the capital of
that wealth to be used for the people 's greatest prosperity .
5. Toezichthoudensdaad, the task of state oversight is performe d in
order to supervise and monitor so that the operation of state
control over these resources is effectively performed for the full
benefit of the people.
The state has jurisdiction over natural resources with the right to
power, which are the absolute right of the citizens given to the state to
administer it so that it can be used for the greater benefit of the people.
In other words , people do not have the ability to govern and handle it
on their own, as there would be a power struggle that can lead t o
bloodshed. Moreover, it is also forbidden for the state to abuse power
authority over natural resources which are essentially given by the
people. (Gulam Dalula May Kafabih & Volta Firdaus, 2015)
In general, the oil and gas industry comprises five phases of
activity, namely exploration, exploitation, processing , transport, and
marketing. These five core activities can be divided into two, namely
upstream and downstream (downstream) activities. Under Article 1
point 7 of the Oil and Gas Rule, Upstream Bus iness Activities are
business activities which are central or focused on business activities
related to exploration and extraction. The Upstream Business Activities
referred to are conducted and regulated by a Cooperation Agreement
(Article 6 subsection 1 of the Oil and Gas Act). Whereas Article 1(10) of
the Oil and Gas Law explains that Downstream Business Activities are
core business activities or depend on refining, transportation , storage
and/or business activities. Downstream business operations as al luded
to are performed under a Business License (Article 7(1) of the Oil and
Gas Act)
Cooperation arrangements for managing and regulating upstream
business operations have been changed numerous times from the
colonial period of the Netherlands to the pres ent. The amendment aims
to look for cooperation contracts which are more in line with the
Republic of Indonesia 's Constitution of 1945, namely to protect natural
resources which should be regulated for full use for people 's prosperity.
The new Cooperation Contract is a Production Sharing Contract with a
gross split scheme in place after the implementation of the Gross Split
Production Sharing Contracts Ministerial Regulation No. 8 of 2017. The
problem with this research is whether the Gross Split Producti on
Sharing Contract is in line with the constitution of the state, namely
protecting natural resources that should be regulated for optimum use
for people 's prosperity?

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Research Methods
This type of research is descriptive normative legal research. This study uses
secondary data in the form of primary legal materials, secondary legal materials,
and tertiary legal materials. Data collection techniques in normative legal
research carried out with literature study of legal materials. Processing of tangible
material activities to systematize written legal materials. In this case the
processing of legal materials is carried out by means of classification according to
the classification of legal materials and compiling the results of the research
systematically and logically, meaning that there is a relationship and the
relationship between legal materials with other legal materials to get a general
picture of the results of the research. The legal material is then analyzed by
interpreting the law.

Discussion
1. Gross Split Mining Political Issues
Management of oil and gas in Indonesia underwent several policy
developments during its development. The Dutch government had found and
mined oil and gas from Indonesian land by forming a Dutch government-owned
corporation (the Royal Dutch and Batafsche Petrolium Maatschappij) before
Indonesia 's independence. American oil companies, such as Standard Oil of New
Jersey and Standard Oil of New York, began entering Indonesia in 1912. The
Dutch government set up a joint venture between the Dutch and American
governments, called Nederlandsch Indische Aardolie Maatschappij (Niam), in the
regions of Jambi, Bunyu, and North Sumatra, so as not to be rivaled by American
firms. The end of the Dutch colonial era entering the early 1940s and
transitioning to the Japanese occupation era, namely in 1942-1945. Japan 's
objective of occupying Indonesia was to control natural resources , especially oil,
to support Japan 's war potential and to support its industry. Japan, which
invaded Indonesia at the time, caused Japanese ownership of previously managed
properties, including oil and gas assets in Indonesia, to fall into the hands of the
Dutch. Via previous Dutch holdings, Japan obtained information and data about
the abundant oil resources in Indonesia. In 1944 Japan discovered the Minas
Field, Riau, Southeast Asia's largest oil field. (Abdul Kadir Jaelani, 2015)
After Indonesian independence, President Soekarno's government took over
all Dutch-owned companies in Indonesia, such as plantation companies and
Netherlands-owned oil companies, and their oil wells. The Indonesian
government had started producing its own oil and gas in the early days of
independence, but still hadn't exported it overseas. The Soekarno government
implemented a concession-system policy from 1946-1959 in the activities of oil
and gas mining. Then only in October 1960 did the government allow
government legislation in lieu of the Oil and Gas Mining Law (PERPPU) No. 44 of
1960. In this Perppu, before the birth of Law No. 8 of 1971 concerning the State
Oil and Gas Mining Company (Pertamina Act), the Government implemented a
Work Agreement or Contract of Employment regime for the management of oil
and gas in Indonesia. After Pertamina was founded as a state-owned corporation,

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and it turned out that the corporation was experiencing rapid development with
the issuance of the Pertamina Act. In addition to succeeding in becoming the
world's largest exporter of LNG, Pertamina's oil production rose from 740,000
barrels a day in 1969 to 1,620,000 barrels a day in 1979. (Handayani I.G.A.K.R, As’Adi
E, Hamzah.G, Leonard T, Gunarto G, 2017)

However, the existence of Pertamina was challenged in 1999 because of the
Oil and Gas Bill of 1999. The bill was supposed to replace the law of Pertamina
which implied the dissolution of Pertamina. Nonetheless, the Oil and Gas Bill
application faced a lot of criticism from various parties and eventually the DPR
rejected the 1999 Oil and Gas Bill, and Pertamina was not dissolved. The life of
Pertamina as a single entity in Indonesia's oil and gas industry ended after the Oil
and Gas Act (Oil and Gas Act) Law No. 21 of 2001 was issued. The Oil and Gas
Legislation is the first step in establishing a more open market in the oil industry
in order to enable liberalisation. Pertamina will be working as one of the oil and
gas industry players classified fairly with other industry participants in the Oil
and Gas Act. In the Oil and Gas Act, Indonesia's oil and gas industry is regulated
to be divided into the Upstream and Downstream sectors, where the upstream
sector is controlled by the Upstream Oil and Gas Special Task Force (SKK Migas)
and the downstream sector is controlled by the Upstream Oil and Gas Regulatory
Agency (BPH Migas). (Surachman A, Handayani I.G.A.K.R, Taruno Y., 2017)
As a government delegate, SKK Migas is charged with upstream control
through a Cooperation Deal. Based on Article 1 point 19 of the Oil and Gas Act,
Cooperation Contracts are Profit Sharing Contracts or other types of cooperation
contracts in Exploration and Exploitation activities that are of greater benefit to
the State and the results are used for the greatest welfare of the nation. Based on
its growth, Indonesia has experienced many changes in the upstream activities of
the Cooperation Contract system since the Dutch era up until 2006. First is the
concession scheme adopted from the Netherlands period until the beginning of
independence, where the company owns all the revenue in the concession and
the state collects revenues only in the form of gross and tax. The second is the
method of contract of service, in this method the company is converted from a
concessionaire to a state contractor. So the state and companies share the
proceeds of oil and gas sales but the state 's position is still very limited in
supervisory capacity, management control is still in the company's hands. The
Contract of Work scheme was eventually scrapped and changed to a Profit
Sharing Contract (PSC). Under this program mining authority is granted to the
client. (Handayani I.G.A.K.R, Sulistiyono A, Leonard L, Gunardi A, Najicha F.U., 2018)
The government provided a PSC contract system because in the Republic of
Indonesia Constitution of 1945 this structure was deemed to reflect Article 33,
rather than the previous concession system. That is because, the state remains
the master of natural resources in this system. It is also predicted that the PSC
program would have a significant long-term effect on Indonesia, by having the
country control its own oil and gas resources. The PSC 's application in Indonesia
was motivated by the need for greater position for the nation by providing the
authority to control upstream oil and gas activities. In this system the business is

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only granted the mining authority with the distribution concept while the
government shares the results of net output with the oil and gas contractors in
this system. The estimation of the government's revenue share with the oil and
gas company is performed quarterly. Essentially, the contractor provides what's
required in upstream operations such as capital and the necessary resources. All
expenses must be approved by the government, because the government will
return the capital to the contractor. Replacement is known as cost recovery, the
cost of replacement if the upstream operations have been performed and the
effects of oil and gas exploration have been identified, or discoveries of oil and
gas reserves that can be produced. At the other hand, if oil reserves which are not
suitable for extraction are not discovered, then all forms of expenditures spent by
exploration contractors will not be substituted. (Subekti R, Sulistiyono A, Handayani
I.G.A.K.R., 2017)

Government Regulation No 79 of 2010 on Recoverable Operating Costs and
Income Tax Treatment in the Upstream Oil and Gas Business Sector (PP Cost
Recovery) provides the legal basis for the introduction of a cost recovery scheme
for PSCs. Nevertheless, the PSC poses a number of issues in its application. In
addition to the cost recovery policy issue, the rise and fall in oil prices also
defines income distribution. Fees and taxes which also affect state revenue with a
revenue sharing system result in government revenue not receiving an initial
percentage of 85 percent of oil and gas production profits. Cost recovery to be
paid 100 per cent is considered to be very detrimental to the state, depending on
the size of the contractor's operating costs. And the recovery of costs paid often
need not be matched with the results obtained from the output. (Algonin A.A,
Shleag A.M, Handayani I.G.A.K.R, Setyono P., 2017)

Basically, cost recovery is applied to return the costs incurred by investors
in carrying out the exploration and exploitation of the produced oil and gas.
These costs may be recovered in the process after receiving consent from an
agency / body with the authority to repay running costs. As for recovery of costs,
the Government must pay for recovery of costs. Different methods of bribery,
markup cost recovery, misuse of state finances, have forced the state to bear high
costs in carrying out oil and gas exploration. The cost recovery rate was USD 15.13
billion, or Rp, in 2012. 147 668 800 thousand. The amount of oil and gas expense
recovery to be paid by the state (in trillion US dollars) for 2001-2005 is 4.35; 5.06;
5.52; 5.60; and 7.68 from the data circulating. And if it is on average at a Rp
exchange rate. It's about Rp, 9,000 / US. 50 Million per annum. Thus the recovery
of costs has in reality many shortcomings in its implementation. So if the cost
recovery fails to apply, the nation can go through more losses year after year.
(Akhmaddhian S, Hartiwiningsih, Handayani I.G.A.K.R., 2017)
Many losses arising from the cost recovery scheme, the government
eventually released Permen ESDM No. 8 of 2017 relating to Gross Split Profit
Sharing contracts. The Gross Split method provides a total output division that is
achieved without the running cost returning process. This program offers
assurances that the contractor can bear the development risk completely, so that
the government will not have to pay for recovery of costs. The government
believes that this option is more realistic and effective because government

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intervention is much reduced, effective, and the difficulty of auditing,
administration, and lobbying is reduced. The most important difference between
PSC and Gross Split is the lack of cost recovery at Gross Split. Regardless of this,
the level of income sharing between PSC and Gross Split is different, in the PSC
the level of revenue sharing is 85 per cent for the nation and 15 per cent for the
contractor, the figure does not include the recovery of costs. However, the profit
share in Gross Split is 57 percent for the state and 43 percent for petroleum
generating contractors and 52 percent for the state and 48 percent for natural gas
generating contractors. Furthermore, there are factors other than cost recovery,
including First Tranche Petroleum (FTP), which are not in the Gross Split profit
sharing arrangement.(Abdul Kadir Jaelani, 2015)
FTP in compliance with Government Regulation No 79 of 2010 relating to
Refundable Operating Costs and Treatment of Income Tax in the Upstream Oil
and Gas Business Field is a certain amount of crude oil and/or natural gas
generated from a work area in one calendar year, until deducting operating and
controlling cost of production (own use) returns. FTP works in such a way that at
the start of output there is assurance about state revenue. Historically, FTP has
been attributed to the second-generation PSC where oil and gas recovery costs
have reached 100%, and it has the possibility that all production output will be
used to restore cost recovery, and FTP is required for state revenue certainty. But
FTP is no longer required in the Gross Split contract as all the sections that the
government and the contractor will obtain will be clear at the beginning of the
contract
Regulation of the Minister of Energy and Mineral Resources No. 52 of 2017
amending the Regulation of the Minister of Energy and Mineral Resources No. 8
of 2017 on Gross Split Profit Sharing Contracts and setting out in Article 6 of the
Regulation of the Minister of Energy and Mineral Resources No. 8 of 2017
'Approval for Field Creation, the volume of benefit sharing shall be Which will be
obtained through cost recovery between the Government and the contractor.
The Gross Split scheme also controls that the supplies and facilities for the
working contractors must remain the state property. This is mentioned in Article
21 of the Energy and Mineral Resources Minister's Regulation No. 8 of 2017 on
Gross Split Contracts. State ownership of assets is considered necessary for
technology transfer in this region, so the assets in Gross Split will remain state
owned property. At the end of the year, the government also released
Government Regulation No. 53 of 2017 concerning tax compliance of Gross Split
Profit Sharing Contracts in Upstream Oil and Gas Business Activities. It has, of
course, complemented the Gross Split program structure, so that the Gross Split
production sharing deal is incompatible from ordinary industry. In Article 6 of
Government Regulation No. 53 Year 2017 on Tax Treatment in Upstream Oil and
Gas Business Activities With Gross Split Profit Sharing Contracts it was specified
that the operational costs incurred by the contractor can be measured as an
aspect of revenue reduction in the sharing of production from oil and gas in the
estimation of taxable revenue.(Abdul Kadir Jaelani, 2015)

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2. Gross Split Contract Framework Regulation on the Caring for People
According to Subianto Tjakrawerdaja, the management of oil and gas on the
basis of Article 33 of the Republic of Indonesia 's Constitution of 1945 must
include seven constitutional features, namely: first, the economy aims at
achieving collective prosperity for all citizens, as explained specifically in the
description of Article 33 of the Republic of Indonesia 's Constitution of 1945
Second, the participation of the citizens in control, the cycle of development and
enjoy the results. This is in accordance with the language found in Article 33(1)
and (4) of the Republic of Indonesia Constitution of 1945. Thirdly, in accordance
with the concept of Article 33(4) of the Republic of Indonesia 's Constitution of
1945, namely fair performance, the economy must be conducted using a free
market system based on fair competition and the State's position and authority to
intervene in the event of market failure. Fourthly, as required by Article 33(1) and
(3) of the 1945 Constitution of the Republic of Indonesia, the role of the State
must be safeguarded, in particular with regard to national economic planning,
the development and enforcement of laws, and the implementation of service
programs and community empowerment, taxes on liberation, subsidies, etc.(
Rahman M.D, Sadath M.N, Giessen L., 2016)

Fifth, BUMN as one of the foundations of economic activity controls
important branches of development, and controls many people's lives. This is
explicitly stated in Article 33(2) of the Republic of Indonesia Constitution of 1945.
Sixth, cooperatives as foundations of the people 's economy must be understood
in a spirit of co-operation with SOEs and the private sector, as well as the
commercial business organizations of individuals. Seventh, an example of an
equitable relationship between cooperatives, SOEs and the private sector must be
the national economy. This idea is enshrined in Article 33(1) of the Republic of
Indonesia Constitution of 1945. Such constitutional provisions will be converted
into a whole collection of legislation relating to oil and gas management. People
's greatest prosperity is the aim of all management and exploitation of national
natural resources. This goal is seen as an interest that can not be ignored, because
it is coveted by every citizen as well as being the mandate of the constitution, and
is the responsibility of the state as a consequence of the right to control the
country itself. Thus every exploitation and use of natural resources is adjusted to
the objective (doelmatig).
There is a belief from the Indonesian Nation which is stated in the 1945
Constitution of Indonesia that Indonesia is a welfare state. One of them is listed
in the Preamble to the 1945 Constitution of the Republic of Indonesia which
clearly stipulates that one of the staatsidee of the Indonesian State is to advance
public welfare. In its body, the 1945 Constitution also formulated the conception
of the welfare state into the phrase "prosperity of the people". The phrase is
contained in Article 33 paragraph 3 of the 1945 Constitution of the Republic of
Indonesia contained in the Chapter of the National Economy and Social Welfare
which states that the earth, water and natural resources contained therein are
controlled by the state and are used to the greatest prosperity of the people. The
article is a norm that expressly regulates state interference in the economy and

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characterizes the adoption of the concept of welfare state in Indonesia, it must
also be implemented and become the basis in making Indonesia's economic
policy, including in the petroleum sector. Petroleum sector policy needs to be
analyzed with the concept of welfare state considering that the sector is
important for the country and controls the lives of many people. For this reason,
the state should play an active role in the petroleum sector, by realizing
democratic state life that is ultimately able to realize the prosperity of the people.
As an important sector for the country and controlling the lives of many people,
if there is a mistake in making policies in the petroleum sector, it can massively
harm the people.( Handayani I.G.A.K.R, Sulistiyono A, Leonard L, Gunardi A, Najicha
F.U., 2018)

Looking at the welfare state theory, that Indonesia in the concept of welfare
refers to the concept of social welfare development, which is a series of planned
and institutionalized activities aimed at improving the standards and quality of
human life. Welfare state is very closely related to social policy (social policy)
which includes the strategy and efforts of the government in improving the
welfare of its citizens. The Indonesian nation in carrying out community, nation
and state life has a legal ideal (rechtsidee). The ideals of the Indonesian nation
are the guides in the direction of the life of the Indonesian people. The opening
of the 1945 Constitution of the Republic of Indonesia is the legal ideal of the
Indonesian people to build an independent, sovereign, just and prosperous
nation. Gross Split can be seen as a bright spot for the oil and gas industry which
requires fast and profitable handling, so that the scale of oil and gas production
can be increased to be distributed wisely by the state. There is a promising
possibility that the Gross Split policy which cuts down the cost recovery system
will benefit the country. Cost recovery system is very detrimental to the country
and very far from the concept of welfare state. Cost recovery is more profitable
for oil and gas companies in Indonesia, including foreign companies. (Subekti R,
Sulistiyono A, Handayani I.G.A.K.R., 2018)

Efforts to realize the prosperity of the people can be seen from the
implementation of the gross split profit sharing contract. The gross split
implementation is the implementation of Article 33 of the 1945 Constitution
within the framework of the welfare state, because it can be the current solution
amid limited capital and technology. Upstream oil and gas management cannot
be separated from the country's goals and direction of state management, namely
to achieve welfare and social justice, so that constitutionally becomes an
important concern in national development, the state's position in relation to oil
and gas natural resources, the state has the freedom to make regulations, policies,
management , management and supervision of oil and gas resources. The
management function is the first and foremost form of state control to achieve
the greatest prosperity of the people. The government must prioritize state
control in the first place, namely managing oil and gas natural resources which
brings greater benefits to the people.(Abdul Kadir Jaelani, 2015)
The emergence of Gross Split aims to improve the efficiency and
effectiveness of oil and gas production sharing patterns. Even though Gross Split
still has weaknesses, but when compared to the previous system, Gross Split is
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more in line with the state's goal, which is as much as possible for people's
prosperity.

Conclusion
Legal provisions covering upstream oil and gas production have undergone
a variety of changes since the colonial period in the Netherlands until now. Oil
and gas management cannot be isolated from the objectives and purpose of state
management of the country, namely to achieve welfare and social justice, so that
constitutionally it becomes a major concern in national development. The
country's position regarding natural resources for oil and gas has the right to
make laws, legislation, management, management and oversight of oil and gas
resources. In the first place, the government must give priority to state power,
namely the management of natural resources from oil and gas that bring greater
benefits to the people. The advent of the PSC system and Gross Split are
government attempts to prosper the people, but the PSC system has many
problems in its implementation and is deemed to be detrimental to the country.
Then Gross Split was born, which aims to strengthen the PSC system and
improve the quality and productivity of the sharing patterns of oil and gas
production. While Gross Split still has drawbacks, Gross Split is more in line with
the country 's goal of being as wide as possible to the citizens as opposed to the
previous system. People 's greatest prosperity is the aim of all management and
exploitation of national natural resources. This goal is seen as an interest that
cannot be ignored, because it is coveted by every citizen as well as being the
mandate of the constitution, and is the responsibility of the state as a
consequence of the right to control the country itself. The production and use of
natural resources therefore tailored to the goals.

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