DPR Commission XII Criticises SKK Migas Over Cost Recovery Issues
The Chairman of Commission XII of the DPR, Melchias Markus Mekeng, has harshly questioned the rising trend in cost recovery, which does not align with the performance of national oil and gas lifting.
Mekeng believes there are issues that must be explained openly by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). He noted that while the state continues to allocate large budgets for cost recovery, national oil and gas production is simultaneously facing a downward trend.
“Our cost recovery is increasing year by year. However, instead of increasing, our lifting is actually decreasing. SKK Migas must be able to explain the reason and the logic behind this situation,” stated Mekeng, who is also the Chairman of the Golkar Party Faction in the MPR, as quoted in a press release on Tuesday (8/9/2026).
According to him, this issue cannot be viewed merely as a technical matter within the oil and gas industry. Cost recovery is directly related to state funds, which ultimately originate from the State Budget (APBN).
“This is the people’s money,” he said.
Mekeng highlighted that the cost recovery budget planned for 2027 is expected to reach approximately US$10.1 billion, or around Rp175 trillion. With such a significant value, he argued that the government and SKK Migas must clearly demonstrate the benefits received by the state.
“If such a large budget is spent, yet we still face declining lifting, the question is: what is that money actually being used for and how much impact does it have on production?” said Mekeng.
Consequently, Mekeng has requested that SKK Migas disclose the entire structure of cost recovery in detail. This includes not just the total figures, but every cost component included within it.
“The components of cost recovery must be broken down. What are the specific costs incurred? Who determines whether a cost is appropriate or not? What are the criteria?” he insisted.
For Mekeng, transparency is absolute as it involves public funds. The DPR and the public must be able to know whether every cost charged to the state is truly necessary, accountable, and provides benefits toward increasing national oil and gas production.
“We want clarity. The public also needs clarity. The Rupiah they pay through taxes enters the APBN, which then pays for cost recovery. We must ensure the public is not left wondering what that money is used for and what the benefits are,” he said.
Mekeng emphasised that Commission XII of the DPR will demand further explanations from SKK Migas. He even opened the possibility for Commission XII to take more decisive steps if the explanations provided fail to address questions regarding the effectiveness and accountability of cost recovery.
“We will hold follow-up discussions. If a convincing explanation cannot be found, we will take firmer steps to ensure everything is properly transparent,” Mekeng asserted.
He reiterated that the size of the budget must not be merely a figure in the APBN. Every Rupiah spent by the state must have its benefits accounted for.
“The public must know that the money being spent provides real benefits,” Mekeng concluded.