Bahlil Blasts Oil and Gas Bureaucracy That Slows Investment

JAKARTA, KOMPAS.com - Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia highlighted the bureaucracy in the oil and gas sector which is deemed still slowing investment and the development of national energy projects.

Bahlil asked that all licensing and regulation processes be accelerated so that the target of increasing national oil lifting can be achieved.

“I am asking my colleagues at SKK Migas, if there is anything slow, replace the person, don’t cause headaches,” Bahlil said at the IPA Convex 2026 event at ICE BSD, Wednesday (20 May 2026).

He said the government has implemented various regulatory reforms to accelerate oil and gas investment. However, obstacles at the implementer level are still observed.

“This is what Mr President Prabowo called a deep state,” he said.

According to Bahlil, layered bureaucratic practices slow investment processes and reduce investor interest in Indonesia’s oil and gas sector.

“Investors are players in K3S, upstream oil and gas carries high risks. Don’t make it difficult. Make it easier,” Bahlil said.

He said the government would open tender for 118 new oil and gas blocks openly without closed-door negotiations.

“No need to negotiate behind closed doors,” he said.

According to Bahlil, investment processes must be made more transparent so oil and gas projects can proceed more quickly.

He also pointed to the bureaucratic chain that is often said to slow decisions on the ground.

“The ones who usually cause chaos are the coordinators, sub-coordinators, verifiers,” Bahlil said.

Therefore, the government is asking all parties to support accelerating oil and gas investment amid the target of lifting oil to 1 million barrels per day by 2029-2030.