DPR Suddenly Accelerates Discussion of Oil and Gas Bill, What Is Happening?

The House of Representatives (DPR) is currently pushing for the deliberation of a Bill to replace Law No. 22 of 2001 on Oil and Gas with a new law. One of its aims is to provide permanent legal certainty for investors in the upstream oil and gas sector. It is also intended to promptly fulfil the mandate of the Constitutional Court (MK) issued in 2012, as well as to respond to global geopolitical dynamics that demand the strengthening of national energy security.

Deputy Chairman of Commission XII of the DPR, Bambang Haryadi, emphasised that the revision of the Oil and Gas Law is an effort to implement the Constitutional Court ruling which annulled several articles in the previous regulation. As is known, one of the Constitutional Court rulings in 2012 dissolved the Upstream Oil and Gas Business Activities Implementing Agency (BP Migas), after which a temporary working unit, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), was formed until a permanent legal entity is established under the revised Oil and Gas Law.

He stated that this Bill will change the direction of oil and gas governance by uniting the functions of control and business operations fully under state control. “The aim is clearly to implement the Constitutional Court ruling. The important point is that control and business operations must be controlled by the state. Law 22 of 2001 separated control and business operations. In this Oil and Gas Bill, they are united in accordance with the Constitutional Court ruling,” Bambang explained to CNBC Indonesia, quoted on Friday (21/8/2026).

The unification of these functions aims to eliminate the legal uncertainty experienced by business actors since the dissolution of BP Migas at the end of 2012. According to him, changing the legal basis from a Presidential Regulation to a law can also serve as capital in pursuing the target of increasing national oil lifting. “That is indeed the aim,” Bambang stressed when asked about the reason for revising the regulation in relation to efforts to boost national oil and gas production.

In addition, Commission XII member Eddy Soeparno added that accelerating the deliberation of the Oil and Gas Bill is important so that the development of the domestic oil and gas sector is no longer hampered by administrative and bureaucratic problems. He explained that the draft regulation has already passed the harmonisation stage and has been designated as a DPR initiative in a plenary meeting. “It is already very important for us to revise the Oil and Gas Law, especially amid the current conditions we face, geopolitical conditions that make our oil and gas needs very strong in strengthening energy security,” Eddy said to CNBC Indonesia, quoted on Friday (21/8/2026).

One of the points highlighted in the Bill is the establishment of a Special Business Entity (BUK) planned to replace the role of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). The BUK is proposed to become the holder of working areas throughout Indonesia and to have the authority for upstream oil and gas business operations, reporting directly to the President. “Because of the importance of the oil and gas sector for our energy security, we propose in the draft Bill that it be placed directly under the President. I think that is one of the significant differences. So it also has oil and gas management business activities,” Eddy explained.

Besides institutional matters, the Bill will also regulate a Petroleum Fund scheme or oil and gas development fund to support research and technology. Parliament is targeting the entire deliberation process up to the enactment of this law to be completed before the end of the current sitting period. “The current sitting period ends in mid-October, so it will be completed before mid-October. The draft has already been harmonised between the DPR in the Legislation Body and Commission XII,” he concluded.

For information, the decision to revise Law No. 22 of 2001 on Oil and Gas as a new Bill was taken in a DPR Plenary Meeting held at the Nusantara Building, Senayan Parliament Complex, Central Jakarta, on Tuesday (18/8/2026). Present at the plenary meeting were DPR leaders, namely Speaker Puan Maharani and four deputy speakers: Sufmi Dasco Ahmad, Sari Yuliati, Saan Mustopa, and Cucun Ahmad Syamsurizal.

Initially, Saan requested the opinions of the factions regarding the Oil and Gas Bill proposed as an initiative of Commission XII. The factions’ opinions were submitted in writing. Saan then asked for the approval of the members present regarding the Bill becoming a DPR initiative. The members of the House approved it. “We ask the honourable House, can the Bill proposed as an initiative of Commission XII of the DPR on Oil and Gas be approved as a DPR initiative Bill?” Saan asked. “Agreed,” the members answered.

Previously, the Legislation Body (Baleg) of the DPR approved the harmonisation of the Oil and Gas Bill. All factions approved the Bill in a decision-making meeting on the results of the harmonisation of the Oil and Gas Bill held at the Nusantara Building, Senayan Parliament Complex, Jakarta, on Saturday (15/8/2026). Working Committee Chairman Sturman Panjaitan said the Oil and Gas Bill was agreed to become a replacement Bill. The Working Committee also made a number of technical improvements and refinements to the draft Bill. “It was agreed in the working committee meeting with the proposers that in broad terms this draft law is agreed to become a replacement law and technical improvements and refinements were made to 39 items, while notes on substantive aspects were fully handed over to the proposers,” he said.

Sturman said there were several changes resulting from the Working Committee meeting. One of them was that the Oil and Gas Bill was agreed as a replacement Bill. In addition, the elucidation of Article 7 was removed and the word ‘contractor’ was moved to become a definition in Chapter I concerning general provisions.