Bahlil Fast-Tracks Oil and Gas Permits to Boost Output, Achieve Energy Self-Sufficiency
Main Takeaways
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JAKARTA, investortrust.id — Energy and Mineral Resources Minister Bahlil Lahadalia has pledged to accelerate permit issuance for oil and gas contractors still waiting on regulatory clearance, as part of a broader push to increase national production and achieve energy self-sufficiency under President Prabowo Subianto’s administration.
Bahlil said the move is crucial to meeting the government's official 2025 target of 605,000 barrels of oil per day (BOPD), set in the state budget (APBN). Speaking at the CEO Forum 2025 at the headquarters of upstream regulator SKK Migas on Wednesday, July 30, the minister emphasized that energy sovereignty is a core component of President Prabowo’s policy platform, known as Asta Cita.
“One of the top priorities in President Prabowo’s Asta Cita is energy sovereignty. This is not just a slogan — it is a noble national goal,” Bahlil said.
Indonesia currently has 128 oil and gas basins, yet only 20 are in production. Many working areas already have development plans (PODs) in place but have stalled due to regulatory bottlenecks or operational inertia. The minister called for these latent assets to be urgently revived and exploited.
Streamlining Lifting and Tackling Bottlenecks
In line with directives from President Prabowo, Bahlil said his ministry will work closely with oil and gas contractors, known formally as kontraktor kontrak kerja sama (KKKS), to identify and eliminate bureaucratic delays hampering the sector’s output.
“I will personally support permit processing for all of you. But for those who already have permits and face no remaining issues, please move forward immediately. If not, we will take firm and lawful action,” Bahlil warned.
He added that solving these challenges requires coordination between ministries and a willingness to break through old patterns of delay.
Local Communities Must Benefit
Bahlil also underscored the importance of ensuring oil and gas projects contribute to local economies. He urged KKKS operators to prioritize community empowerment, saying that development must involve local labor and create shared prosperity.
“Empowering local communities is a must. The presence of oil and gas resources must yield tangible benefits for surrounding residents,” he said.
Fiscal Regime No Longer an Issue
Bahlil dismissed concerns over Indonesia’s upstream fiscal regime, noting that the existing frameworks — whether gross split or cost recovery — already offer attractive internal rates of return (IRR). This, he argued, makes upstream oil and gas projects commercially viable under current terms.
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