State Regulation and Supervision of Oil and Gas Companies for Regional Revenue and Community Welfare in Luwuk Banggai

Zulkarnain Zulkarnain; Insarullah Insarullah; Saharuddin Djohas; Ade Alya Revalina; Saron Tolego

doi:10.70184/kw70n010

Authors

Zulkarnain Faculty of Law, Universitas Tadulako, Palu, Indonesia Author
Insarullah Faculty of Law, Universitas Tadulako, Palu, Indonesia Author
Saharuddin Djohas Faculty of Law, Universitas Tadulako, Palu, Indonesia Author
Ade Alya Revalina Faculty of Law, Universitas Tadulako, Palu, Indonesia Author
Saron Tolego Faculty of Law, Universitas Tadulako, Palu, Indonesia Author

DOI:

https://doi.org/10.70184/kw70n010

Keywords:

Oil and Gas, Regional Revenue, Community Welfare, Welfare State, Natural Resources

Abstract

Purpose: This study examines how the state exercises its regulatory and supervisory functions over oil and gas activities, and how the contribution of oil and gas companies to regional revenue and community welfare in Luwuk Banggai, Central Sulawesi, can be optimized.

Research Design and Methodology: This descriptive empirical legal study combines normative-juridical and sociological-juridical approaches. Statutes, regulations, and regional planning documents were analyzed together with field observations, in-depth interviews with purposively selected informants (community, company, non-governmental organization, and legal expert representatives), and documentary studies. The data were analyzed descriptively and qualitatively and cross-checked by triangulation.

Findings and Discussion: The mining and excavation sector contributed an average of 18.47% to 22.92% of Banggai Regency's GRDP, yet this economic weight is not matched by benefits for affected communities. Corporate social responsibility (CSR) programs under the 2023-2026 cooperation agreements are listed by sector and duration, but without published budgets or outcome indicators, and Government Regulation No. 47 of 2012 directs reporting to company organs rather than to communities. Oil and gas affairs are held by the central government under Law No. 23 of 2014, leaving the regency with limited supervisory authority, while unresolved grievances have led to blockades of production facilities.

Implications: The study proposes five legal reforms: minimum content and public disclosure for CSR; disclosure of realized revenue-sharing and participating-interest data; a standing grievance and mediation forum; joint environmental compliance monitoring; and formal coordination between the central oil and gas authority and the regional government. Academically, it grounds these proposals in the welfare-state concept and the distributive-justice theories of Mill and Rawls.