Legal Analysis of Smoothness Handover of Rokan Block from Chevron Pacific Indonesia to Pertamina Company

Indonesia is a country enriched with natural resources. One of the sources is oil and natural gas. The spirit to manage and explore these resources emerged after Indonesia's independence through the 1945 Constitution of the Republic of Indonesia which was specifically stated in Article 33 (3) of the 1945 Constitution. Article 33 Paragraph (3) of the 1945 Constitution stipulates that "Earth and water and the natural resources contained therein shall be controlled by the state and used for the greatest prosperity of the people". From the provisions of Article 33 Paragraph (3) of the 1945 Constitution, it can be explained that the management of natural resources in the form of exploration and exploitation of natural resources within the Indonesian jurisdiction including oil and natural gas is the authority of the state. Mining commodities such as oil and natural gas, gold, silver, bronze, coal, and so on are non-renewable resources. As unrenewable natural resources, oil and gas are businesses with very high demand in Indonesia. It is one of the biggest income promises for Indonesia. In addition, the oil and gas business is capital and technology intensive. The objectives of the study on handover of Rokan Block from Chevron Pacific Indonesia to Pertamina Company are as follows: To analyze the legal smoothness of handover of Rokan Block from Chevron Pacific Indonesia to PT. Pertamina; and to analyze the the Implementation of the transfer of technology with the handover of the Rokan Block from Chevron Pacific Indonesia to Pertamina. The research methodology used in this study is normative one where all legal materials and the published documents are thoroughly analysed. The results of the study show that the handover of Rokan Block from Chevron Pacific Indonesia to Pertamina Company was running well according to law applicable eventhough the regional government in Riau was angry to the central government due to the ignorance of the interests of the local communities. Besides, more than fifty years the operation of Rokan Block by Chevron Pacific Indonesia the transfer of technology remained in theory and cannot be implemented at all. The failure is due to the absence of strict law in Indonesia.