Indonesia revises Oil and Gas Bill amid BUK formation debate

The Indonesian House of Representatives (DPR RI) is currently discussing the revision of the Oil and Gas Bill (RUU Migas). A central point of debate is the proposed formation of a Special Business Entity (BUK Migas), which could potentially hold mining and upstream business authority, potentially replacing the functions of SKK Migas and merging activities currently managed by Pertamina Hulu Energi (PHE).

Industry observer Barry Pratama warned that the revision must prioritize long-term energy security and legal certainty to attract investment in high-risk upstream exploration. He cautioned against placing excessive burdens on Pertamina through government assignments, noting that such a move could jeopardize both the company and national energy stability.

Beyond the BUK, Commission XII member Eddy Soeparno stated that the bill includes several other critical components, such as the establishment of an Oil and Gas Balance (Neraca Migas) and an Oil and Gas Fund (Dana Migas). The revision also aims to strengthen domestic energy security through affirmative measures and incorporate sustainability aspects into the sector's operations.