Opportunities to Reform Institutional Structures in RUU Migas

The Commission XII of Indonesia’s House of Representatives  (“ DPR RI ”) is currently soliciting input on the Draft Bill (“ RUU Migas ”), which proposes amendment to Law No. 22 of 2001 (“ UU 22/2001 ”) on Oil and Gas (“ Migas ”). The Deputy Chair of Commission XII, DPR RI, Dony Maryadi Oekon, stated that the main focus of the revision is to restore investment interest in the upstream Migas sector.

“Indeed, what lies beneath the earth is the right of our nation. However, the enthusiasm of investors to develop the upstream migas sector has declined,” Dony told Hukumonline.

Dony also confirmed that input is welcome, including regarding institutional aspects of the Migas sector. He did not rule out the possibility of reinstating institutional provisions such as the Foreign Contractors Coordination Agency (Badan Koordinasi Kontraktor Asing/BKKA), which was previously regulated under Law No. 8 of 1971 on State Oil and Gas Mining Companies (“ Law 8/1971 ”), albeit with adjustments to reflect current conditions.

Furthermore, Dony aims for substantive discussions on the RUU to commence in early 2026, specifically during the third legislative session (Masa Sidang III), through the Working Committee (Panja) of Commission XII. The DPR RI is also open to accelerating the discussion by encouraging the issuance of a Letter of the President (Surpres).

“We will see regarding the Surpres later, to determine what needs to be done to expedite the process. Because today, the lifting hasn’t been increasing,” he added.