House targets new oil and gas law in 2026, eyes major overhaul

  • Published on 18/07/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The House of Representatives (DPR) will open the door to drafting a new Oil and Gas Law (UU Migas) in 2026 only upon the completion of deliberations on the New and Renewable Energy (EBT) Bill and the Electricity Bill, said Eddy Soeparno, Member of Commission VII and Deputy Speaker of the People’s Consultative Assembly (MPR).

“Our current priority is completing the EBT Bill. After that, we’ll move on to Electricity, and then to Oil and Gas,” Eddy said on Thursday, July 17, 2025.

Although the timeline is flexible, Eddy emphasized that the Migas legislation will follow the order of the House’s legislative priorities. He also clarified that the process will not be a simple revision but the creation of an entirely new law.

“After our review, we found that the revisions are more than 50 percent substantial, which warrants drafting a new law,” he said.

A major proposed change includes replacing the current upstream oil and gas regulator, SKK Migas, with a special state-owned enterprise that will report directly to the president.

“The Constitutional Court has declared SKK Migas as an institution that cannot be maintained. A new enterprise will be formed to manage upstream oil and gas activities,” Eddy said.

The House has already received the academic draft of the new oil and gas bill from the Parliamentary Expertise Body and is currently reviewing it internally within Commission VII.

Meanwhile, Sugeng Suparwoto, Deputy Chair of Commission VII, cited the lack of commitment from the executive branch as a key reason for the repeated delays in revising the existing Oil and Gas Law.

Speaking at a national seminar hosted by Katadata on July 8, 2025, Sugeng said, “The Oil and Gas Law is included in the Priority National Legislation Program (Prolegnas) every year, but the government itself has been reluctant to move it forward.”

He added that the House has repeatedly attempted to advance discussions, including drafting an inventory of issues (DIM), but those efforts have failed due to insufficient support from the government and failure to meet quorum.

“Even from the government’s side, there have been frequent postponements − that’s the reality,” he said.

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