Jakarta – Indonesia’s oil and gas sector still faces several challenges, including those related to legal certainty and bureaucracy, lawmakers said Wednesday (21/9), both important in the effort to increase oil and gas production to meet domestic needs.
Deputy Chairperson of Commission VII DPR RI, Maman Abdurrahman, said that Indonesia’s unpopularity in the eyes of investors was caused by two factors, the shift in investment from large oil and gas industry to renewable energy and the complicated requirements and bureaucracy.
“There are around 140 permits being processed in the oil and gas sector,” said Abdurrahman at the 46th Indonesian Petroleum Association (IPA) Exhibition and Convention dialogue session entitled ‘Multi-Stakeholder Partnership in Achieving Indonesia’s 1 MBOPD and 12 BSCFD Targets 2030’.
He said an increase in oil and gas production still needs to be done, because new and renewable energy cannot meet domestic energy needs, appealing for the simplification of licensing and accelerating the ratification of the Oil and Gas Law. “The draft oil and gas bill is final. Now it is in Commission VII, and we are pushing it to the Legislative Body,” said Abdurrahman.
President Director of IPA, Gary Shelby said that Indonesia is still attractive in the eyes of investors because of the huge potential of the oil and gas industry. However, he stated that there are many things that must be addressed by the domestic oil and gas industry stakeholders.
From a policy perspective, the government needs to immediately issue an energy transition roadmap, create legal stability, and adjust the economy of oil and gas projects. In terms of investment, there is a need for fiscal improvement, increased exploration, and a shift in investment to clean energy.
Meanwhile, in the technical field, what must be done is to improve the quality and quantity of data collection in the oil and gas sector and provide infrastructure in locations that have significant potential for oil and gas resources. (Hartatik)