Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has announced plans to revamp overlapping regulations in the oil and gas sector.
This reform is set to be a key priority during the first 100 days of his tenure under President Prabowo Subianto’s administration.
Currently, oil and gas companies face a complex process, having to secure 129 permits to conduct exploration activities. Bahlil is committed to streamlining these procedures by improving the efficiency of the Service Level Agreement (SLA).
“The speed is still lacking, and I’m working on finding a solution,” Bahlil spoke to the media at the ESDM ministry office in Jakarta on Monday, October 21, 2024.
By simplifying regulations, Bahlil hopes to boost oil and gas production targets. He plans to work closely with the Upstream Oil and Gas Regulatory Task Force (SKK Migas) to identify wells that can be optimized and to explore advanced technologies for enhancing production.
Bahlil was reappointed as Minister of ESDM and sworn in by President Prabowo earlier on Monday. He initially took on the role in August 2024, replacing Arifin Tasrif.
Then President Joko “Jokowi” Widodo had previously underscored the importance of regulatory reform to expedite investment in the oil and gas sector.
Jokowi argued that simplifying bureaucracy would increase Indonesia’s global competitiveness and create more jobs.
“Without simplifying permits and making regulations easier, it will be very difficult for us to compete with other countries,” Jokowi said on October 10, 2024.
