November 18, 2025 | 08:23 am
TEMPO.CO, Jakarta - PT Pertamina (Persero) President Director Simon Aloysius Mantiri has called on the Indonesian government to strengthen regulations to boost investment in the upstream oil and gas sector. A strong legal basis is needed because investment in this sector continues to decline due to oil price pressures that erode company profits.
He stated that regulatory strengthening could be included in the Oil and Gas Bill, currently being discussed by Commission XII of the House of Representatives (DPR). "Without strong regulations, investment attractiveness will continue to weaken, and energy security will be threatened," Simon said in a hearing on Monday, November 17, 2025.
According to him, the upstream oil and gas industry is currently working hard to stem the natural decline in production. However, these efforts are insufficient without long-term policy certainty.
According to data from the Indonesian Ministry of Energy and Mineral Resources (ESDM) in 2024, national oil production will only reach 212 million barrels, while imports will reach 330 million barrels, consisting of 128 million barrels of crude oil and 202 million barrels of fuel.
To strengthen the upstream sector, Simon proposed the establishment of a petroleum fund managed by the Special Oil and Gas Agency. The funds can be used for exploration, infrastructure development, and decarbonization programs.
Previously, Deputy Chairman of Commission XII of the House of Representatives (DPR), Sugeng Suparwoto, stated that the Oil and Gas Bill is on the legislative priority list and is targeted for completion this year. The bill also includes the establishment of a new agency to replace SKK Migas and regulates programs to increase oil lifting.
The establishment of the special agency is mandated by Constitutional Court Decision No. 36/PUU-X/2012, which dissolved BP Migas in 2012. Since then, upstream oil and gas management has been temporarily transferred to SKK Migas, which is ad hoc and lacks a legal basis.
Afriandi Eka Prasetya, Chair of the SKK Migas Workers Union, also highlighted the need for reforms to the licensing and spatial planning systems to make oil and gas management more efficient and eliminate overlap with other sectors. He noted that other countries, such as Malaysia and Iran, have successfully established a single agency model that facilitates investors.
"We want Indonesia to have an institution that acts as a single point of entry for investors, like Petronas in Malaysia," he said in a meeting with the House of Representatives' Legislative Body on June 30, 2025.
He stated that Indonesia is in a less competitive position, with only one of 14 oil and gas projects attracting investor interest. The current management model is also considered to create legal uncertainty and complicate cross-ministerial coordination.
He proposed reforming the relationship between the government and business actors. Currently, cooperation contracts are conducted in the form of government-to-business (G to B) through the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). This scheme would be more appropriately changed to business-to-business (B to B) by appointing a special business entity as the holder of the oil and gas concession.
"The state grants concessions to special business entities, and then those business entities partner with investors," he said.
Editor's Choice: Pertamina Urges Public to Be Cautious of Fake LPG Cylinders
Click here to get the latest news updates from Tempo on Google News
Indonesian Diaspora in Germany Rejects Ratification of Revised Criminal Procedure Code
1 jam lalu
Indonesian diaspora in Germany protests the planned enactment of the Criminal Procedure Code Bill or KUHAP.
Pakistan Shows Interest in Partnering on Indonesia's Free Nutritious Meal Program
14 jam lalu
Pakistan is keen to collaborate with Indonesia to strengthen the Free Nutritious Meal Program (MBG) initiative.
Indonesia's BPS: Global Geopolitical Risks Fueling Surge in Gold Prices
14 jam lalu
PT Antam data shows gold sales from January to September 2025 reached 34,164 kilograms, or 1,098,398 troy ounces.
Indonesia Imposes 7.5-15% Export Duty on Gold
16 jam lalu
Several commodities, including dore, granules, ingots, cast bars, and minted bars, will be subject to gold export duties.
BNPB: Landslides in Banjarnegara Isolate 45 Residents, Hundreds Take Refuge
23 jam lalu
A landslide in Banjarnegara, Central Java, Indonesia, on Saturday, November 15, 2025, has left dozens of residents isolated and hundreds taking refuge
BNPT Chief Claims Terrorism Network Recruits Young People Through Online Games
23 jam lalu
BNPT notes a pattern of several terrorism networks in Indonesia recruiting young people through social media, including online games.
UPI Students in Bandung Develop Hydrogen-Powered Electric Racing Motorbike
1 hari lalu
Universitas Pendidikan Indonesia (UPI) in Bandung has introduced a prototype of a hydrogen-powered electric racing motorbike equipped with a battery.
BMKG Warns of a Twofold Rise in West Java Rainfall Risk During the Second Ten Days
1 hari lalu
The BMKG says that the potential for high rainfall in West Java, Indonesia, has doubled in the second ten days.
BNPB Uses Weather Modification to Speed Up Cilacap Landslide Search
1 hari lalu
Indonesia's National Disaster Mitigation Agency (BNPB) is modifying the weather to expedite search for the missing victims of the Cilacap landslide.
Low Awareness of Dental Care in Indonesia: A Growing Issue
1 hari lalu
The low awareness of dental care in Indonesia from an early age has resulted in ongoing dental and oral health problems.
