Indonesia’s draft revision of the Oil and Gas Law, known as RUU Migas, is nearing completion, Energy Minister Bahlil Lahadalia said at a press conference on Friday, 16 October. He said the bill’s list of issues from the government, known as the DIM, is 80-90 percent complete.
The revision is meant to improve upstream oil and gas governance and make the sector more attractive to investors, SKK Migas deputy Desti Melanti said at a press conference on Tuesday, 20 October. The bill is an initiative of the House of Representatives, the DPR, which submitted it to the government.
Fiscal terms seen as decisive
Bayu Kusuma Dewanto, finance director of PT Pertamina Hulu Energi, said fiscal policy would weigh most heavily on whether upstream projects make economic sense. He pointed to whether a working area runs under a gross split or cost recovery scheme, and to the split itself.
Desti said the bill would inevitably touch on governance. “I believe the goal is one, toward improvement,” she said.
Scale of the sector
Indonesia’s oil demand is nearing 1.6 million barrels per day, while domestic crude output is around 600 thousand barrels per day, according to the figures cited at the forum. The country has 128 oil and gas basins, of which upstream operators are working in about 20.
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