BUK Migas to Report Directly to President, DPR Pushes for Faster Licensing and Investment

JAKARTA, KOMPAS.com - The Special Oil and Gas Business Entity (BUK Migas), which will be directly accountable to the President, is expected to accelerate decision-making and cut through licensing obstacles in the oil and gas sector.

Yulisman, a member of Commission XII of the House of Representatives from the Golkar Party faction, stated that strengthening the institutional management of oil and gas is a crucial part of improving governance, while also boosting investment, exploration, and the increase of national oil and gas production.

"BUK Migas, which reports directly to the President, represents a positive direction for us to explore together. Fundamentally, the institution to be established must be able to strengthen governance, speed up decision-making, and provide certainty for the development of the national oil and gas industry," Yulisman said in a statement on Friday (18/9/2026).

According to him, Energy and Mineral Resources Minister Bahlil Lahadalia’s perspective on positioning BUK Migas under direct presidential responsibility is an important element to be examined thoroughly in the deliberation of the Oil and Gas Bill alongside the government.

He believes the institutional design of BUK Migas must be capable of resolving coordination issues and the lengthy licensing processes that have so far hindered investment and production increases in oil and gas.

"There are still various aspects we need to discuss comprehensively. We want to obtain an institutional design that truly addresses the future needs of Indonesia’s oil and gas management while ensuring certainty for all stakeholders," he stated.

Yulisman said BUK Migas is expected to enhance cross-sector coordination and hasten the resolution of licensing barriers.

He added that speeding up these processes is crucial to provide certainty for business players so that oil and gas investment and exploration activities can be ramped up.

"Coordination problems and the long licensing process must not obstruct investment and production growth. Therefore, the division of authority and the relationship between BUK Migas and relevant ministries and institutions must be clearly formulated," he said.

He further noted that the investment and exploration increases are ultimately expected to support a rise in national oil and gas lifting.

On another note, Yulisman stressed that strengthening oil and gas governance must also deliver greater benefits to producing regions.

According to him, increasing investment and production should proceed alongside regional involvement, regional government-owned enterprises (BUMD), local business actors, and enhanced economic benefits for communities around operational areas.

"The grand objective is to bolster national energy resilience and sovereignty. We hope the Oil and Gas Bill discussions produce regulations for BUK Migas that are effective, professional, transparent, and capable of driving investment and boosting national oil and gas production," Yulisman said.

Previously, Energy and Mineral Resources Minister Bahlil Lahadalia stated the government will strengthen upstream oil and gas management institutions through BUK Migas.

This plan will be discussed with the House of Representatives in the deliberation of the Oil and Gas Draft Law.

He said the government will provide more detailed explanations regarding the form, authority, and working mechanisms of BUK Migas during the bill discussions.

"The presidential letter has been issued by the President. As the chair of the government's bill discussions, I will explain these details as the bill discussion with the DPR progresses," Bahlil said at the Presidential Palace, Jakarta, Thursday (17/9/2026). According to Bahlil, the President has given directives to strengthen oil and gas management institutions.

One of the provisions to be regulated is that BUK Migas will be positioned directly under the President.

He has not yet explained whether BUK Migas will replace the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) or have a different institutional form.

Bahlil only stated that the government will clarify this during the Oil and Gas Bill discussions with the DPR.

"I will convey it during the law discussions. But the institution will be directly under and responsible to the President. And that is already clear. There is no debate about that," he said.