Bahlil: Don't Let Jakarta Control All Oil and Gas Projects

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has urged regional businesspeople to be involved in national oil and gas projects so that regions do not merely watch from the sidelines in their own territories. He made the remarks while discussing the development of new oil and gas blocks and energy projects across various regions. ‘I also ask that regional entrepreneurs be collaborated with. Do not let all contractors, all people from Jakarta become the masters in their own land,’ Bahlil said at the IPA Convex 2026 event in ICE BSD on Wednesday, 20 May 2026. He argued that the involvement of local business actors is important so that the economic benefits of the oil and gas industry are felt directly by energy-producing regions. Nevertheless, Bahlil stressed that the participation of regional businessmen must continue to prioritise professionalism because the upstream oil and gas sector carries high risks. ‘This is upstream oil and gas business and must be professional. This is not a state budget company (APBN) or regional budget company (APBD) that just works,’ he said. He noted that small technical errors in the oil and gas sector can pose significant risks to worker safety and the environment. ‘This is just a pipe welding mistake; a leaking pipe can kill someone,’ Bahlil said. He cited the development of a new gas project by ENI and Petronas in East Kalimantan, targeted to begin production in 2028-2029. He said the project needs full support from regional governments to prevent delays in its development process. ‘Please assist our colleagues from ENI and Petronas who have just discovered it, so that by 2028-2029 they can already be producing,’ he added. He also urged contract contractors under a cooperation contract (K3S) that have operated in accordance with regulations to immediately hand over their participating interest (PI) to the regions in line with applicable provisions. ‘For K3S that have run their businesses well but have not yet handed over their PI to the regional head, please do so promptly,’ he concluded.