OVERVIEW

The discussion on the Draft Bill on Oil and Gas (“Draft Bill”) will enter new phases at the House of Representative (“House”). The House has recently initiated the Draft Bill to repeal and replace Law No. 22 of 2001 on Oil and Gas (“Oil and Gas Law”), which is considered to be ineffective in increasing oil and gas production and protect the national interest over the control of Indonesian natural resources.

Considering the importance of the oil and gas industry to the nation’s dependency on fossil fuel, the Draft Bill is included in the 2015 Prioritized National Legislation Program (Program Legislasi Nasional Prioritas 2015); however, there is no guarantee that the Draft Bill will be passed within this year.