# Indonesia Oil and Gas Bill legislative development

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-oil-and-gas-bill-legislative-development
> Updated: 2026-08-30T23:49:49.000Z. Sources: 15. Developments: 2.

The Indonesian House of Representatives (DPR RI) has agreed to draft a new Oil and Gas Bill (RUU Migas) to replace Law Number 22 of 2001. A legislative working group completed 39 technical improvements to the draft, including standardizing terminology and correcting article references. If approved as a DPR initiative, the leadership will submit the bill to President Prabowo Subianto for further government discussion.

In parallel, the Indonesia Petroleum Association (IPA) has engaged with the Ministry of Energy and Mineral Resources (ESDM) to provide industry input on the upcoming legislation. Discussions between the IPA and the Ministry focused on regulatory directions, such as the implementation of “assume & discharge” provisions and the strengthening of the “lex specialis” principle for upstream activities. The talks also addressed contract mechanisms, cost recovery, and the potential use of the “gross split” scheme as a simpler alternative to reducing cost recovery figures.

Recent discussions have expanded to include the potential formation of a Special Oil and Gas Business Body (BUK Migas), aimed at increasing state involvement in resource management.

## Claims

- President Prabowo Subianto inaugurated the first phase of a 100 GWp solar power plant project in Bali on August 25, 2026 (corroborated by 2 sources)
- The 100 GWp solar program has the potential to create approximately 5.52 million jobs (corroborated by 2 sources)
- The 100 GWp solar program could generate annual savings of up to Rp73.9 trillion (corroborated by 2 sources)
- A coal gasification project in East Kalimantan aims to produce 2 million tons of methanol per year (corroborated by 2 sources)
- The coal gasification project is expected to save Rp7.1 trillion in foreign exchange annually (corroborated by 2 sources)
- The 100 GWp solar program is projected to require an investment of approximately Rp1,140 trillion (single source)
- Indonesia has a carbon storage potential of 500 Gigatons in saline aquifers and 4 Gigatons in depleted oil and gas reservoirs (single source)
- The Ministry of Energy and Mineral Resources is testing 3 kg Compressed Natural Gas (CNG) cylinders for limited public use (single source)

## Timeline

### 2026-08-30: Indonesia accelerates energy transition via solar, gasification, and carbon capture projects

Indonesia is accelerating its energy transition through a 100 GWp solar program, coal gasification for methanol, and carbon capture initiatives to bolster energy independence and economic growth.

15 sources. https://clstr.news/cluster/indonesia-petroleum-association-discusses-oil-and-gas-bill-with-ministry

### 2026-08-15: DPR RI agrees to draft Oil and Gas Bill as replacement law

The Indonesian DPR RI has agreed to develop the Oil and Gas Bill as a complete replacement for Law No. 22/2001, following technical refinements by the Legislative Body's working group.

4 sources. https://clstr.news/cluster/dpr-ri-agrees-to-draft-oil-and-gas-bill-as-replacement-law

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Cite as: Indonesia Oil and Gas Bill legislative development. CLSTR, https://clstr.news/situations/indonesia-oil-and-gas-bill-legislative-development