Indonesia’s energy minister, Bahlil Lahadalia, said the government is preparing a Special Business Entity, or BUK, in the draft Oil and Gas Law to act as a single window for upstream permits. He spoke on Wednesday, 28 October, at the opening of FOREK Hulu Migas 2026 in Jakarta. Lahadalia is also Minister of Energy and Mineral Resources.
Permits are the bottleneck. Contractors must currently go from ministry to ministry, and that slows exploration. Lahadalia said he did not want production sharing contractors, once they win a tender, still going around ministries for approvals.
Tax relief during exploration
The draft also includes tax relief during the exploration stage. Under the proposal, no tax would be payable until production results exist. Lahadalia put it plainly: if there is no result, there is nothing to pay.
He added that the government also wants projects with approved plans of development to move faster, with the aim of raising national lifting.
Certainty for investors
Lahadalia said certainty is one of the principles investors want. Rules must not be convoluted, he said, and permits must be clear. He put the discussion of the bill’s inventory of problems, known as the DIM, at about 90 percent complete.
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