Minister Bahlil Urges Lemigas to Boost Work Productivity

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has asked the Head of the Oil and Gas Testing Centre (Lemigas), Muhammad Ikhsan Kiat, to boost the work productivity of the institution he leads. “Yes, my directive earlier was to immediately increase Lemigas’s work productivity,” Bahlil said when met at the ESDM Ministry Office in Jakarta on Wednesday. He made the statement after inaugurating Muhammad Ikhsan Kiat as the Head of Lemigas, replacing Mustafid Gunawan who retired at the end of 2025. The appointment was based on a mandate from President Prabowo Subianto for Lemigas to conduct oil and gas procurement, such as crude oil and LPG, in the national interest. However, he continued, besides carrying out imports, Lemigas must also inspect the quality of fuel oil in Indonesia and perform other duties. “Besides importing, he also has to check quality and everything else. So, please carry out internal consolidation,” Bahlil said. In accordance with President Prabowo Subianto’s directive through Presidential Regulation Number 26 of 2026 concerning the Procurement of Crude Oil, Fuel Oil and/or Liquefied Petroleum Gas (LPG) for National Energy Security, Bahlil ordered Lemigas to import oil from Russia. This rule is stipulated in Article 4 of Presidential Regulation Number 26 of 2026. Article 4 paragraph (3) states that the implementation of imports by a Public Service Agency (BLU) in the energy sector is carried out in accordance with a cooperation agreement. The BLU may conduct imports based on cooperation agreements, either intergovernmental cooperation or cooperation between the Central Government and overseas suppliers. Furthermore, Article 5 of Presidential Regulation Number 26 of 2026 provides room for the BLU or Pertamina to carry out import procurement in urgent circumstances even if there are price differences based on quantity, product type, country of origin and delivery time, according to the purchase contract agreement. Such urgent circumstances are based on a determination by the minister who administers governmental affairs in the oil and gas sector, in this case the Minister of Energy and Mineral Resources.