Danantara to Finance Oil and Gas Investments in the RUU Migas

The Government and the House of Representatives (Dewan Perwakilan Rakyat – “DPR”) will soon discuss amendments to Law No. 22 of 2001 (“Law 22/2001”) on Oil and Gas (Minyak dan Gas Bumi – “Migas”).

A source from Hukumonline in the DPR revealed that several pre-discussion measures for the amendment of Law 22/2001 have been carried out by the Migas Working Committee (Panitia Kerja – “Panja”) of Commission XII in coordination with the Legislative Body (Badan Legislasi – “Baleg”) of the DPR RI.

“The Panja has held several meetings, and the Baleg has also begun its meeting.” he said.

In addition to the need to update the law to align with current conditions, the main issue driving the amendment of Law 22/2001 is the target to increase Migas lifting. The substantial investment value required to achieve the target of 1 million barrels of oil per day is planned to be fulfilled through financing by the Investment Management Agency, Daya Anagata Nusantara Investment Management Agency (“BPI Danantara”).

BPI Danantara is projected to become a funding source for Migas well exploration projects as well as refinery construction.

“Yes, because Danantara will carry out the exploration, we will become one of the investors for said exploration,” he added.