Draft Bill on Oil and Gas

The House of Representative (“House”) has initiated a Draft Bill on Oil and Gas (“Draft Bill”)[1] to repeal and replace Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”), which is considered outdated and unable to answer the current development of oil and gas industry.

The Draft Bill is one of the most highly anticipated legislation due to the ongoing rumors over the reform plan by President Joko Widodo’s administration. In essence, the Draft Bill changed several provisions in the current Oil and Gas Law and introduced new provisions on the following matters: