Abandonment and Site Restoration (ASR) Funding Scheme in the Context of Environmental Protection after Upstream Oil and Gas Business Activities from an Economic Law Perspective

Abstract

Abstract This study focuses on the Abandonment and Site Restoration (ASR) Funding Scheme and its significance in environmental protection following upstream oil and gas activities. ASR activities have a substantial impact on the environment, necessitating an adequate funding scheme to ensure both environmental preservation and economic sustainability in the oil and gas sector. The presence of comprehensive regulations governing the implementation of ASR activities is crucial, as they address not only the restoration of environmental functions but also accountability and financing. Failure to address these concerns could lead to future problems, particularly when operations are completed and oil and gas companies have departed from Indonesia. This research, conducted through legal analysis, examines the implementation of ASR activities in accordance with international and Indonesian laws and regulations, while also identifying the obstacles encountered in their execution. The study employs normative legal research methodology, utilizing secondary data such as laws, regulations, and books. The findings of this research elucidate the funding scheme for post-operation ASR activities, including the ASR funds outlined in SKK Migas Decree No. KEP-OO87/SKKMAO0O0/2018/SO, which provides guidelines for Abandonment and Site Restoration Work, and the subsequent fund arrangements following upstream oil and gas operations as stipulated in Permen ESDM No. 15 of 2018.