Government Urged to Scrutinise Implementation of 10 Per Cent Participating Interest in Tangguh Block Management
The extension of the Production Sharing Contract (PSC) for the Tangguh Block, operated by BP Berau Ltd. until the year 2055, represents a strategic policy in the management of national natural resources.
This policy directly relates to investment certainty, state revenue, the sustainability of LNG production, the rights of producing regions, the interests of indigenous communities, and the implementation of the 10 per cent Participating Interest (PI) for local regions.
The Chairman of Committee III of the DPD RI, Dr Filep Wamafma, believes that within the PSC, the government must ensure that all legal, institutional, economic, social, and environmental aspects have been comprehensively reviewed. This includes the status and implementation of the 10 per cent PI for West Papua as a producing region.
“In relation to this decision, there needs to be a thorough audit and examination of SKK Migas, BP Tangguh, the Ministry of Energy and Mineral Resources (ESDM), and other related parties, conducted objectively and based on data,” said Filep in a statement on Tuesday, 1 September 2026.
He explained that this aims to ensure that the entire process of contract extension, work area management, and the implementation of the 10 per cent PI complies with legal provisions, contracts, principles of good governance, and the interests of the producing regions.
According to Filep, this step serves as a form of commitment to legal certainty, transparency in natural resource management, and the protection of the rights of West Papua and indigenous communities.
Several administrative and policy facts that require examination include the Tangguh Block PSC documents extended until 2055, BP Berau Ltd. as the operator of upstream oil and gas activities, and the obligations and mechanisms of the 10 per cent PI for the region in accordance with statutory regulations.
“Furthermore, the development of facilities and fields, including Train 3, carries legal, economic, and fiscal consequences that need to be inspected. There also needs to be adequate public explanation regarding the status of offers, receipts, funding, and the implementation of the 10 per cent PI in connection with the contract extension until 2055,” said Filep.
He argued that the Ministry of Energy and Mineral Resources needs to clarify the legal basis for the extension of the BP Tangguh PSC until 2055, including whether the extension constitutes a new contract, an extension of the old contract, a substantial amendment, or a continuation of the contract with specific changes.
In his view, this classification is vital as it determines the emergence of new obligations regarding the 10 per cent PI, field development, state revenue, social and environmental obligations, and the rights of the producing regions.