National Energy Council: Oil And Gas Sector Regulations Must Be Simplified Immediately

Illustration of offshore oil and gas well drilling Pertamina Hulu Mahakam (ANTARA/HO-Pertamina)

JAKARTA - Member of the National Energy Council (DEN) Abadi Poernomo stated that it is necessary to immediately simplify the regulation of the oil and gas sector (oil and gas) for ease of business in this field.

Through ease of regulation, including licensing, he continued, the oil and gas industry will get ease of business, so it is hoped that it will further support the increase in national energy production and resilience.

"All permits are urgent to be simplified. For example, AMDAL (an analysis regarding environmental impacts), because at this time it does not determine the time limit. Likewise, the Location Permit, whose speed often depends on the local regional head," he said by telephone in Jakarta, Sunday.

Abadi hopes that all officials in ministries and institutions will care about simplifying regulations as directed by President Prabowo Subianto, especially officials related to oil and gas business licensing as well as regents and governors, because they issued location permits.

Moreover, he continued, there are indeed many regulations in the oil and gas sector, not only location permits and AMDAL.

Each relevant ministry/institution can simplify the licensing so as to facilitate oil and gas businesses either by adding human resources or by cutting bureaucracy.

According to him, simplifying regulations, including licensing, can facilitate access to various oil and gas reserves findings by the oil and gas industry, including through PT Pertamina Hulu Energi (PHE) as PT Pertamina (Persero)'s Subholding Upstream, which in fact has uncovered many new oil and gas reserves.

PHE did make many findings, including the most gas. In 2024, for example, the realization of the findings of the 2C Recoverable Subholding Upstream Pertamina Group's oil standard (MMBOE) or 2C Inplace of 1.75 BBOE including the evaluation of the existing structure assessment.

The realization of the findings of the 2C contingent's oil and gas resources increased by 34 percent compared to the 2023 achievement, amounting to 488 MMBOE.

Early May, PHE through Pertamina EP South Sumatra, also found gas in the North Wilela 001 (NWLA 001) Enim Estua Pertamina EP South Sumatra exploration well.

The results of the Drill Steam Test (DST) state that the exploration well is estimated at 12.8 MMSCFD, the BoPD +/- 500 condensate. These findings are expected to increase additional national oil and gas lifting by 2025.

Previously, President Prabowo Subianto at the opening of the Indonesia Petroleum Association (IPA) Convention and Exhibition 2025 in Jakarta said it was necessary to simplify regulations.

"I repeat, simplify regulations, Indonesia is an expert in making regulations, so it is difficult for us to reduce this ourselves. Officials who do not want to simplify regulations will be replaced, I will remove them," said Prabowo.