Revision of Migas Law: Regions May Receive Priority in Revenue Sharing

The Parliament is currently drafting revisions to Law No. 22 of 2001 on Oil and Gas (“ Migas ”), as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “ Law 22/2001 ”). Revenue Sharing Funds (Dana Bagi Hasil–“ DBH ”) constitute one of the aspects proposed for amendment.

“I urge that regional interests included in this regulation, specifically Migas producing regions, be given greater priority in revenue sharing,” said Rocky Candra, a member of the Legislation Body (Badan Legislasi–“ Baleg ”) of Indoenesia’s House of Representatives (“ DPR RI ”), to Hukumonline.

He cited Jambi as one of the Migas producing regions in Indonesia, but its DBH is very small. As a result, regional development is not significantly impacted.

Another reason for prioritizing DBH is that these regions bear the direct impact of exploration and production. Therefore, Rocky added, proportional fairness is needed regarding the region’s contribution to state revenue.