Indonesia is known as the country with the largest oil and gas reserves in
the region southeast asia and is becoming a valuable assets to carry out the nation
development. These valuable assest will not able to give prosperity to the people if
the oil and gas exploration and exploitation activities in the upstream is poorly
manage by the Indonesian Government. Oil and gas exploration and exploitation
activities in the upstream oil and gas sector management in Indonesia has so many
corruption possibility including Cost Recovery corruption. To prevent and
eradicate corruption that occur in the upstream oil and gas sector management,
Contractor with Oil and Gas Mutual Agreement (KKKS) required the principle of
Good Corporate Governance and the Indonesian government which is represented
by the Special Task Force for Oil and Gas business activities (SKK Migas) has to
make an effort in order to generate maximum benefits and revenue to the state for
the greatest welfare of the people.