In 2022, the ESDM Ministry noted that 1,075 downstream oil and gas companies, accounting for about 73 percent of the total 1,492 companies, did not comply with mandatory reporting requirement.

Maompang Harahap, the Director of Downstream Oil and Gas Business Development, urged non-compliant companies to fulfill their reporting obligations.

He stated that reporting requirements are already stipulated in the Oil and Gas Law No. 22 of 2001 and its implementing regulations.

"The government obliges downstream oil and gas companies to regularly report their business activities, including the types, quantities, and operational activities, to the Minister of Energy and Mineral Resources, with copies sent to the regulatory body," Maompang said in a press statement on Thursday, August 3, 2023.

Threats of permit revocation

On the other hand, Maompang warned that several sanctions could be imposed on companies that fail to comply with the regulations. The highest penalty could involve suspending or revoking their business permits.

"If they fail to submit reports on their business activity plans and implementations, they may face sanctions in accordance with the applicable laws and regulations, including written warnings, suspension of business permits, and, in severe cases, revocation of business permits," he added.

The list of downstream oil and gas companies (covering crude oil, refined oil, and petroleum products) that have not submitted regular or any reports on their business activities since obtaining their business permits is being compiled.

"The government mandates downstream oil and gas companies holding business permits to report their business activity plans and implementations, including types, quantities, and operational activities, periodically or when necessary," he said.

How to report

Downstream oil and gas companies are required to submit their business activity reports no later than the 10th of each month to the Minister of Energy and Mineral Resources, specifically to the Director-General of Oil and Gas, through the application https://perizinanmigas.esdm.go.id for companies whose permits were issued before 2019 and already have reporting accounts.

For companies with permits issued in 2019 and thereafter, they should submit their reports via email: izin.minyak@esdm.go.id.

Reflecting on 2022 license revocation

This revocation of licenses is not the first to ever occurred. Previously in 2022, thousands of mining entrepreneurs are left disappointed when the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, revoked 2,065 mining business licenses (IUP).

Bahlil stated that this number represents 98.4 percent of the targeted IUP revocations, which were set at 2,078 IUPs.

Bahlil explained that 306 of the revoked IUPs (covering 9,413 hectares) were for coal mining, 307 IUPs (covering 445,352 hectares) were for tin mining, and 106 IUPs (covering 182,094 hectares) were for nickel mining.

Additionally, there were 71 IUPs (covering 544,728 hectares) for gold mining and 54 IUPs (covering 356,328 hectares) for bauxite mining.

"Eighteen IUPs for copper were converted to cover 70,663 hectares, and there were 1,203 other mineral IUPs covering 599,126 hectares, including C minerals category," added Bahlil.