DPR and Government Prepares RUPTL-like Regulation for Oil and Gas

Commission XII of the House of Representatives of the Republic of Indonesia (Dewan Perwakilan Rakyat Republik Indonesia - “DPR RI”) encourages the government to establish regulation similar to the Electricity Supply Business Plan (“RUPTL”) for the Oil and Gas sector.

Vice Chairman of Commission XII from Nasdem Fraction, Sugeng Suparwoto explained the General Plan for Oil and Gas Supply (“RUPMG”) is a complement to Regulation of the Government No. 79 Tahun 2014 on National Energy Policy (“PP 79/2014”) in the oil and gas sector. According to him, the policy is also necessary to prevent the criminalization of corporate actions carried out by officials of State-Owned Enterprises (BUMN), which often occurs.

“In the end, there must be both a RUPTL and a RUPMG to ensure fairness, preventing undesirable situations like those we face today,” Sugeng said.

Minister of Energy and Mineral Resources (“ESDM”) Bahlil Lahadalia welcomed and considered the proposal. According to him, a more comprehensive projection of the needs and efforts to fulfill oil and gas requirements is necessary in the form of more specific policies. “I agree. In fact, I believe that in the future, we will discuss a type of RUPTL for electricity in the oil and gas sector as well,” Bahlil said.