Eventhough Indonesia has proclaimed its independence. there were many foreign oil companies whose operations in the Indonesian soil were in contradictory to the 1945 Constitiution article 33 subarticles 2 and 3.

Teuku H. Mohamad Hassan, Chairman of the Economic Section of the Indonesian Parliament proposed a motion.

The main points of T.H.M.Hassan's motion were to urge the Government:

1. To form within one month a State Committee on Mining.

2. To postpone the issuance of all concessions, exploitation permits or the renewal of expired permits,
while awaiting the results of the State Committee on Mining.

Chairul Saleh as the Minister of Basic Industries and Mines (PERDATAM) proposed a National Mining Bill,
which finally produced Law No. 44 Prp year 1960 as a National Law on Oil and Gas Mining in Indonesia
to replace the IMW, later on followed by the establishment of three companies:
P.N. PERTAMIN (PP No.3/1961), P.N. PERMINA (PP No.198/1961), P.N. PERMIGAN(PP No.199/1961)