PROFITABLE NATIONAL OIL COMPANY MANAGEMENT MODEL BASED ON CONSTITUTION

Abstract

This study has an aim to recite and analyze the model of National Oil Company which is more profitable and not contradicting to the constitution and global world development. The research method is doctrinal legal which referring to secondary data sources. The datas The data consists of various legal sources governing oil, gas and mining in Indonesia, and various relevant secondary legal reference materials. oil and gas are sources of production related to the livelihoods of the wider community, therefore in Article 33 of the 1945 Constitution, it is regulated that these resources must be managed for the greatest prosperity of the people. Pertamina as a state company must compete openly with foreign companies which incidentally has many advantages in technology, capital and risk management. Pertamina is demanded to compete for profit, but it must pay attention to the interests of the people. Efforts to improve and innovate in accordance with the demands of global conditions is one of Pertamina's in managing Oil. At the Upstream Oil and Gas activities, in accordance to Regulation of Oil and Gas, Oil and Gas Board of Controller as the supervisor of some cooperation with third parties, should be integrated to the Pertamina as a work unit. Whereas at the Downstream Oil and Gas activities, the whole operational responsibility is given to Pertamina.