Regarding The Dissolution Of SKK Migas, The Minister Of Energy And Mineral Resources Said This

Illustration of SKK Migas (Photo: dock. SKK Migas)

JAKARTA - The government is working on a revision of Law No.22 of 2001 concerning Oil and Gas (UU Migas).

With this revision, the role of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) as the management of Upstream Oil and Gas Business Activities is in danger of being disbanded.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif opened his voice regarding this matter. Arifin said that his party had not conducted an internal discussion.

However, Arifin admitted that the existence of SKK Migas helped the progress of the upstream oil and gas industry from a complicated bureaucracy.

"We haven't broken the details internally, but the existence of this Oil and Gas SKK gives the centri authority, so there is no need for a long bureaucracy, so it's more agile," Arifin told the media crew quoted on Monday, September 25.

For this reason, his party will still discuss the Special Business Agency (BUK) which will replace SKK Migas.

"What will BUK look like later, we will discuss it first," added Arifin

Arifin also confirmed that SKK Migas would be disbanded because it was a regulation of the Constitutional Court.

The revision of this law is also expected to be completed by the end of 2023 after the Problem Inventory List (DIM) is prepared by involving experts and the public.

"God willing (December). We will arrange the DIM with experts and the community first. Hopefully this year it will be completed, including the EBT," concluded Arifin.

Previously on a separate occasion, the Head of SKK Migas Dwi Soetjipto said he expected the institution he led to would only be changed to a Special Oil and Gas Business Entity and not dissolved.

"I estimate that SKK Migas will turn into a special business entity. Not disbanded but transformed into a Special Business Entity," said Dwi when met on the sidelines of The 4th International Convention on Indonesian Upstream Oil and Gas Industry 2023 (ICIUOG), Wednesday, September 20.

Dwi added that this is because establishing a new business entity is not an easy matter and requires many experienced and quality Human Resources (HR).

"We now have SKK Migas, therefore the equipment owned by SKK Migas can be utilized. SKK Migas assets are sustainable resources," concluded Dwi.