President Susilo Bambang Yudhoyono has issued a presidential regulation to ratify a key Association of Southeast Asian Nations agreement to assist member states who experience an emergency energy shortage.
The Asean Petroleum Security Agreement was first agreed to in Cha-am, Thailand, in March 2009.
The State Palace said the presidential regulation was issued taking into consideration the Constitution, existing laws on oil and energy and on international cooperation, as well as the bloc’s energy cooperation pact, which Indonesia ratified in 1995.
The petroleum security agreement stipulates the establishment of a Coordinated Emergency Response Measures to help Asean member states experiencing emergency situations in energy supply, by mobilizing Asean members’ oil industry.
CERM will be an operational institution composed of a regulatory council, a compliance committee, a secretariat, a coordinating body, industry advisory group and an implementing body with membership from each of the Asean members states.
The CERM will act when a member country experiences energy shortages of at least 10 percent of its normal domestic consumption for at least 30 consecutive days.
Under the mechanism, the country experiencing the emergency, has to report to the secretariat of the Asean Council on Petroleum (Ascope) and seek the assistance of the CERM.
All Asean countries are under the obligation to provide oil and gas to a country in need, but the assistance should be on a voluntary basis and is to be negotiated between the concerned nations.
The 10 members of Asean are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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