Jakarta – The Indonesian government has long highlighted the importance of revising the Oil and Gas Law to improve the investment climate in the oil and gas industry. Minister of Energy and Mineral Resources (EMR) Arifin Tasrif said that the discussion on the revision of the Oil and Gas Law will continue after the Renewable Energy New Energy Law (EBET) is completed.
After prioritising the revision of the Minerba Law, it is now the turn of the EBET Law to take a bigger role. However, according to him, these revision efforts face obstacles, with priorities constantly shifting.
“There is a serious revision (of the Oil and Gas Law), but this year we first take care of the EBET Law,” Arifin Tasrif said in an official statement.
Although the completion of the EBET Law is considered necessary, some parties are concerned that the delay in revising the Oil and Gas Law may deepen the challenges faced by the oil and gas industry, especially in improving the investment climate.
Several groups, including Mulyanto, a Commission VII of the House of Representatives member, believe that rearranging many aspects of the oil and gas sector is crucial to optimising its management’s efficiency and effectiveness.
One of the issues faced is increasing oil and gas production amidst the transition to energy decarbonisation.
Mulyanto realised that investment competition in the oil and gas sector is not limited to competition between countries but also between oil and gas and new and renewable energy sources (EBT).
“The need for a strong upstream oil and gas institution, under the mandate of the Constitutional Court (MK), which functions as an implementer and regulator,” Mulyanto said in a written statement.
Furthermore, Mulyanto explained that this agency should be able to easily coordinate with other ministries to facilitate investment infrastructure, especially related to licensing and land.
Working with relevant ministries, the agency is expected to develop attractive incentives for oil and gas investors, in line with efforts to recover the oil and gas industry amid global uncertainty involving the Russia-Ukraine war and fluctuations in world oil prices. (Hartatik)
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