[REVISION HISTORY]

Indonesia Oil and Gas Bill legislative development

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2026-08-31 04:33 UTC → 2026-08-31 09:08 UTC · added ~~removed~~

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.

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