Executive Director of ReforMiner Institute, Komaidi Notonegoro, has called on the government and the House of Representatives (DPR) to immediately revise Law No. 22/2001 on Oil and Gas, asserting that much of the 24-year-old legislation is no longer aligned with the current needs of the oil and gas industry.

“Based on our analysis, at least 60 percent of the provisions in the law are no longer needed,” Komaidi said during the National Seminar on Upholding the Sustainability of Upstream Oil and Gas Industry for Energy Independence, held on Tuesday, 8 July, 2025.

He noted that the law has undergone three judicial reviews since its inception, with the Constitutional Court mandating a revision as early as 2008. However, despite the long-standing directive, no meaningful amendments have been enacted to date.

One major example of outdated content, according to Komaidi, is the continued reference to BP Migas, a government agency that was disbanded years ago. Its role has since been replaced by SKK Migas, the Upstream Oil and Gas Regulatory Task Force. However, SKK Migas lacks the firm legal basis BP Migas once had.

“Today, oil and gas companies are contracting with a representative of the state whose regulatory authority is precariously defined beneath a vulnerable legal structure. It can be easily revoked at any time,” he warned.

Despite regulatory uncertainty, Komaidi expressed amazement that Indonesia’s upstream oil and gas sector continues to function, calling it “a blessing from God.”

Beyond legal revisions, Komaidi stressed the need for greater incentives to attract investment in the upstream sector. He argued that the government, particularly the Ministry of Finance, still evaluates incentives with a short-term fiscal mindset.

“They tend to see incentives as reducing state revenue. But without investment, there is no revenue to begin with,” he cited.

He emphasized that this mindset is misguided and risks deterring critical investment. While Indonesia struggles, the global upstream oil and gas industry continues to thrive. For instance, global reserves have risen from 1,300 billion barrels in 2000 to 1,900 billion barrels in 2024.

“If we look at the data, global oil and gas reserves keep increasing. The so-called 'sunset industry' is not the global oil and gas sector − it’s Indonesia’s. We need to change our perspective,” he said.

According to Komaidi, 47 percent of global upstream oil investment currently flows into North America, primarily because of its aggressive and supportive incentive policies. He urged Indonesia to take similar steps or risk falling further behind in global energy competitiveness.