ESDM Prepares Draft Bill on Oil and Gas

The Government has reaffirmed its commitment to concluding the deliberation of the amendment to Law No. 22 of 2001 on Oil and Gas (“ Migas ”), as amended by Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “ Law 22/2001 ”). The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (“ ESDM ”), Laode Sulaeman, stated that the discussion of the academic manuscript for the Draft Bill (“ Draft Bill ”) has been completed.

“To the best of my knowledge, the academic manuscript is already prepared, as it has been promoted by Indonesia’s House of Representatives of the Republic of Indonesia (“ DPR RI ”) since the previous period.” Laode stated to Hukumonline,

Currently, the Ministry of ESDM is drafting the legislative text in accordance with input provided by the DPR RI during the previous period. The completion of the draft amendment to Law 22/2001 is crucial as part of the government’s efforts to achieve a national oil and gas lifting target of 900,000 barrels per day by 2030.

Institutional developments, as well as the dynamics of the upstream and downstream Migas sectors over the past twenty years, will become the focus of the forthcoming regulation.

“It is not impossible that further discussions of the Draft Bill with DPR RI will take place in the near future,” said Laode.