New Regulation Requires Mandatory Implementation of SNI and SKKNI in the Upstream Migas Sector

The Ministry of Energy and Mineral Resources (“ESDM”) is currently drafting a Regulation of the Minister on the Mandatory Implementation of the Indonesian National Standards (“SNI”) and the Indonesian National Work Competency Standards (“SKKNI”) for the Quantity Assurance System of Oil and Gas (“Migas”) in Upstream Migas Business Activities.

Laode Sulaeman, Director General of Oil and Gas at the Ministry of ESDM, confirmed that the ministerial regulation, which is adapted from Decree of the Minister of Energy and Mineral Resources No. 30.K/HK.02/MEM/2021 on Guidelines for the Implementation of the Quantity Assurance System (“KepmenESDM 30/2021”), is currently undergoing further processing prior to its formal enactment. “With regard to the mandatory implementation of the SNI and SKKNI, the Regulation of the Minister is still in progress,” he said.

The proposed Permen will require all contractors to implement SNI 9040:2021 in presenting quantity data at every stage of Migas production. The proposed regulation will also mandate the application of SKKNI for the Quantity Assurance System as the basis for the certification of personnel involved in the implementation of the system.

Such certification shall be conducted through a Professional Certification Body (Lembaga Sertifikasi Profesi - “LSP”) that is duly licensed and has obtained a recommendation from the Director General of Migas.