Antara News·Indonesia·Thursday, September 17, 2026 at 03:57 PM

New oil and gas body to report directly to Prabowo, Bahlil says

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Maria, Kenzu

This will not reduce the processes that should properly remain within the authority of each ministry,

Jakarta (ANTARA) - Energy and Mineral Resources Minister Bahlil Lahadalia said the Special Oil and Gas Business Entity (BUK Migas), currently being prepared by the government, will be positioned under and report directly to President Prabowo Subianto.

Lahadalia said the establishment of BUK Migas is part of discussions on the Oil and Gas Bill, which the government will conduct with the House of Representatives (DPR) once the presidential letter (Surpres) on the bill's deliberation has been issued.

"I will explain that during the deliberation of the bill, but the institution will be positioned under and directly accountable to the President, and that is already clear and not up for debate," Lahadalia said at the Presidential Palace complex here on Thursday.

According to him, the government now only needs to finalize the regulatory framework to strengthen BUK Migas, particularly regarding licensing.

The move is aimed at ensuring that cross-sector licensing processes do not become an obstacle to increasing national oil and gas production, or lifting.

"We do not want cross-sector licensing to become an obstacle to increasing our lifting," he said.

Even so, he stressed that strengthening BUK Migas will not eliminate the authority of relevant ministries to carry out licensing processes in accordance with the existing regulations.

"This will not reduce the processes that should properly remain within the authority of each ministry," he explained.

In addition to licensing, he said BUK Migas will also be encouraged to have flexibility in negotiating with both private parties and the government.

This flexibility relates to oil and gas management cooperation schemes, including cost recovery mechanisms and other forms of cooperation deemed capable of benefiting both the government and private companies.

"We will move forward with this. It is just the model that we will push for, along with flexibility in negotiations with both the private sector and the government, whether through cost recovery or other forms that can benefit both sides," he explained.

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