BUK Migas to Replace SKK Migas, Bahlil Responds

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has spoken out regarding the plan to establish the Special Business Body (BUK) Migas, which is projected to replace the role of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).

Bahlil stated that the institutional design for BUK Migas is still in the discussion phase. According to him, the government is open to various institutional formulations, provided they deliver the best benefits for the interests of the nation and the state.

He explained that SKK Migas itself was the result of institutional changes in the management of the upstream oil and gas sector. Previously, the government operated BP Migas, before that institution was dissolved following a Constitutional Court (MK) ruling.

“Everything is currently under discussion. As for SKK, it was actually BP previously, which was then annulled by the Constitutional Court, making its nature temporary and ad hoc. I believe all possibilities are open. The important thing is that we find the best formulation for the good of the nation and the state,” Bahlil said at the Ministry of ESDM on Friday (11/9/2026).

Previously, oil and gas practitioner Hadi Ismoyo suggested that the new BUK Migas should possess stronger authority than previous upstream management institutions. However, Hadi believes that BUK Migas should focus on being a regulator, while the operational function remains with PT Pertamina (Persero).

He noted that this division of functions is essential to avoid overlapping authority between BUK Migas and Pertamina. By acting as a regulator, BUK Migas could perform regulatory and management functions more effectively without taking over the operational roles currently handled by Pertamina.

“In my opinion, BUK should focus on being a regulator. The operator role is already filled by Pertamina. However, BUK could allocate a Petroleum Fund for initial data acquisition so that the quality of offered Working Areas (WKP) is improved and the data is more accurate, thereby attracting big foreign investors,” he said.

Amidst Indonesia’s challenges regarding energy security, he believes BUK Migas should be placed directly under the President. Such a position would grant the institution stronger authority to execute the President’s vision regarding national energy security.

Hadi assessed that BUK Migas does not need to be formed with a concept similar to Danantara, as that could potentially lead to overlaps with Pertamina, particularly in operational functions.

Furthermore, he advised that BUK Migas should not be placed under Pertamina, as this could diminish the institution’s authority. He also does not recommend placing BUK Migas under the Ministry of ESDM, fearing it would limit the agency’s ability to execute the President’s vision for national energy security.

“BUK should be under the President to be more powerful. BUK should not be under Pertamina; if it is under Pertamina, its authority will be reduced. In the organisational structure, there should be a solid line to the President and a dotted line for coordination with the Ministry of ESDM. BUK should not be under ESDM, as it will not be able to execute the President’s vision and mission regarding National Energy Security,” he added.