Parliament Rushes Energy Transition Regulations to Simplify Licensing

The House of Representatives of the Republic of Indonesia (“DPR RI”) plans to accelerate the discussion of a number of strategic regulations related to energy transition in 2026. Eddy Soeparno, a member of Commission XII of the DPR RI, said that the regulations to be discussed include the Revision of Law No. 22 of 2001 on Oil and Gas, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 (collectively referred to as “Law 22/2001”) (“Oil and Gas Draft Bill”), Draft Bill on New and Renewable Energy (“EBET Draft Bill”), and Draft Bill on Climate Change Management (“Climate Change Management Draft Bill”).

"For the next 12 months, we will implement a number of activities focusing on regulation and legislation. Second, we will harmonize the parties involved in the renewable energy sector," said Eddy.

According to him, the discussion of these regulations is aimed at facilitating investment licensing in the renewable energy sector and improving the efficiency of bureaucracy between ministries and institutions, which has often been overlapping. At the same time, the regulations being drafted also take into account the challenges of environmental crises and climate change.

“The licensing process will become more efficient, including in handling various issues faced by investors, such as policy consistency. This is so that investors are not confused,” said Eddy.