Overview

Energy and mineral resources are the sectors which have probably come in for the most criticism from President Joko Widodo. In 2017, the president voiced specific criticism of the Minister of Energy and Mineral Resources regarding several of his ministry’s regulations which, he believed, were hampering business development. Moreover, as we moved into 2018, the president was expecting investment across several sectors, including energy and mineral resources, to receive a boost.[1] In order to offer a response to the president's critique, the Minister of Energy and Mineral Resources (“Minister”) has now finally reformed the sector’s legal framework by revoking some 90 regulations and 96 licenses. Within the oil-and-gas sector, 18 of these regulations and 23 licenses had been issued by the Minister; while 12 of these regulations had been issued by the Special Taskforce for Upstream Oil-and-Gas Business Activities (Satuan Kerja Khusus Minyak dan Gas Bumi – “SKK Migas”); with three licenses coming from the Downstream Oil-and-Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi – “BPH Migas”). [2]