By Romel S. Gurky
Minister of Energy and Mineral Resources Bahlil Lahadalia has pledged to expedite the licensing process for PSC contractors as part of efforts to meet Indonesia's oil and gas lifting target of 605,000 barrels per day (bpd) set in the 2025 State Budget (APBN). This move is in line with President Prabowo Subianto's energy sovereignty agenda.
During the CEO Forum 2025 at the SKK Migas office in Jakarta, Bahlil emphasized that energy sovereignty is a key priority for President Prabowo's administration, adding that it was more than just a slogan but a national aspiration. He further stated that it is crucial to fully utilize Indonesia’s oil and gas potential, particularly as only 20 out of 128 basins are currently in production, leaving significant untapped resources.
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Bahlil noted that many working areas with existing Plan of Development (POD) approvals have yet to progress, indicating that there is still much to explore. To address this, he has committed to collaborating with contractors to identify and resolve issues causing delays in the permitting process and to speed up the overall approval process.
"I will assist in the licensing process, but for those whose licenses are already complete or have no further issues, I urge you to move forward immediately. If not, we will take measured steps according to regulations," Bahlil said.
He also highlighted the importance of empowering local communities, emphasizing that the presence of natural resources must benefit the surrounding populations. Furthermore, Bahlil reassured industry stakeholders that fiscal support for economically viable upstream oil and gas projects is no longer an issue, as the Internal Rate of Return (IRR) has been made economically feasible.
Editing by Alexander Ginting
