Relieve The Investment Climate, The Government Ready To Review The Proposal Of Revision Of The Oil And Gas Law

Illustration (Photo: Doc. Antara)

JAKARTA - Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, revealed that the government is ready to propose a revision of the Oil and Gas Law with several points of improvement.

One of the points of improvement is licensing and ease of doing business.

"We have discussed (revision of the Oil and Gas Law) several times together with the DPR's Expert Board, SKK Migas and I think we are very ready to submit this design. The main thing is to improve the investment climate," said Tutuka in an official statement, Tuesday, December 27.

He hopes that the revision of the Oil and Gas Law can increase the investment climate which is considered less attractive than neighboring countries.

"We are less active than our neighboring countries. The speed of return on capital is also not good. We need to fix it to be more competitive," said Tutuka.

Furthermore, Tutuka said, the government is aware that many countries in the world are starting to switch to renewable energy, but on the other hand, Indonesia still has a lot of fossil energy. For that, he continued, it is wise for Indonesia to also exploit fossil energy, especially gas, as capital towards renewable energy.

"So we are not just built-up, but with the capital of fossil energy we can build renewable energy in the country," he concluded.

Just so you know, the DPR targets to be able to complete the revision of the Oil and Gas Law by 2023.

"In 2023 I will make sure the Oil and Gas Law is complete. This oil and gas law will be an initiative of the DPR to be able to accelerate the discussion of content contained in the national oil and gas upstream umbrella regulations," said Chairman of Commission VII DPR Sugeng Suparwoto at The 3rd International Convention on Indonesian Upstream Oil and Gas (IOG) 2022 in Bali, at the end of November 2022.

Sugeng said the House of Representatives Commission VII helped solve the problem (problem solving) in the energy sector and mineral resources.

In addition to playing a role in legislation, budgeting, and supervision, his party also encourages the development of the upstream oil and gas industry.

The discussion on the revision of the Oil and Gas Law is very slow compared to several other laws, such as Law No. 3 of 2020 concerning Mineral and Coal Mining which is a revision of Law No. 4 of 2009.

According to Sugeng, the acceleration of the new oil and gas law must be carried out immediately because the DPR and the Government are also preparing the New Renewable Energy Law.