Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia has confirmed that, under the Oil and Gas Bill (RUU Migas), the institutional status of the Special Oil and Gas Business Entity (BUK Migas) will be placed directly under the authority of the President, rather than under the authority of the Ministry of Energy and Mineral Resources.
He said that the President had issued a Presidential Letter (Surpres) to several ministers instructing them to discuss the Oil and Gas Bill with members of the House of Representatives (DPR).
“Equally important is the President’s direction regarding the Oil and Gas Bill reported by the National Energy Council. We will strengthen it by having this institution placed directly under the President. As the relevant technical minister, we will carry out what has been instructed in accordance with the President’s direction,” Minister Bahlil told reporters, as reported on Saturday, September 19, 2026.
As is known, under the draft Oil and Gas Bill, BUK Migas will take over the role of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). It will also receive additional responsibilities related to oil and gas business operations or the holder of authority over oil and gas mining activities.
“I will convey this during the discussion of the law. But the institution will be under and directly accountable to the President. And that is already clear and is not up for debate,” he said.
Minister Bahlil also said that the government would seek a regulatory formula to strengthen BUK Migas, particularly in terms of licensing, so that regulations do not hinder efforts to increase oil and gas production (lifting).
“This will be done without reducing the processes that are properly required under the respective authorities of each ministry. We will continue to carry this out; it is simply the model that we are seeking to promote, along with greater flexibility in negotiations between the private sector and the government, whether through cost recovery or other arrangements that can provide mutual benefits,” he concluded.
