Indonesian Political, Business & Finance News

State Assets in Rokan Block Must Be Protected, Synergy is Key

| | Source: REPUBLIKA Translated from Indonesian | Energy
State Assets in Rokan Block Must Be Protected, Synergy is Key
Image: REPUBLIKA

Economic expert Professor Hamid Paddu believes that synergy between local governments and contractors is vital for protecting state assets within the Rokan Block operational area. Such synergy can help accelerate the handling of various regional needs related to the smooth running of upstream oil and gas activities.

Hamid stated that oil and gas operational activities are linked to various local issues, including land and employment. Therefore, inter-agency coordination is required so that the authority of local governments and law enforcement agencies can function effectively.

“Various activities related to the region certainly require coordination, as issues regarding land, employment, and so on are local matters. However, this must be in the form of coordination that does not create additional bureaucracy or incur extra costs. If done correctly, it will be beneficial as it will quickly resolve regional problems that disrupt Rokan Block operations,” Hamid said on Friday (4/9/2026).

According to Hamid, coordination that operates within the respective authorities of each institution can help maintain the smoothness of business activities. Efficiency must also be considered to ensure that the established mechanisms do not add a cost burden to operational activities.

“Because it could become a pattern for imposing unnecessary costs,” said the professor from Hasanuddin University.

Hamid suggested that optimising the role of the Riau Province Oil and Gas Operational Support Task Force could serve as a platform for cross-agency coordination. The Task Force plays a role in handling land issues and protecting Upstream State-Owned Assets (BMN), including facilitating mediation in cases of damage, encroachment, or unauthorised occupation of state assets.

Hamid added that synergy is also in line with the principles of decentralisation. Although the Rokan Block is a national strategic activity, local governments and regional law enforcement agencies still possess authorities that must be exercised according to their respective duties.

“So, if coordination is for the benefit of policy, it is perfectly legitimate. However, prove that the coordination is professional and strictly adheres to the respective authorities of each institution, so that it does not incur unnecessary costs,” Hamid remarked.

The optimisation of the Riau Province Oil and Gas Operational Support Task Force was one of the decisions made during a Focus Group Discussion (FGD) held by PT Pertamina Hulu Rokan (PHR) alongside the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and the Riau Regional Police (Polda Riau) on 6 August 2026.

The FGD brought together law enforcement, government officials, regulators, academics, and stakeholders to align perceptions regarding the handling of land issues related to upstream oil and gas operations, specifically concerning State-Owned Assets (BMN).

In recent years, several illegal activities on Upstream Oil and Gas State-Owned Assets have affected PHR’s operations. These activities include illegal encroachment, customary land claims without adequate legal basis, illegal land transactions, the issuance of overlapping land documents, illegal logging, and access disruptions within forest areas.

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