JAKARTA, Aug 14 (Reuters) - Indonesian authorities arrested the head of the country's oil regulator for alleged corruption, an energy official said on Wednesday, piling more uncertainty on energy policy in Southeast Asia's biggest economy.
The arrest comes as Indonesia is trying to attract investment to reverse declining oil output amid ballooning domestic energy demand. The country has faced international criticism for unclear regulations and complaints about a nationalist stance on resources.
SKKMigas Chairman Rudi Rubiandini was taken into custody from his Jakarta residence late on Tuesday by officials from the Corruption Eradication Agency (KPK), said Elan Biantoro, a spokesman for the energy regulator.
"He was taken by the KPK to the KPK offices. He is still there," Biantoro told reporters. "Later a (KPK) officer went to Mr. Rudi's office on the 40th floor. Until now it has been sealed off by the KPK."
Rubiandini was appointed late last year to head SKKMigas, which replaced the now defunct industry regulator BPMigas after it was declared unconstitutional.
KPK officials were not immediately available for comment.
The former OPEC member was once self-sufficient in oil and gas but has been struggling for years to attract investment to halt declining output.
Foreign oil firms including Chevron, ConocoPhilips and Petrochina operate in Indonesia.