The Draft Oil and Gas Law (RUU Migas) is considered necessary not only to address the fundamental issue of national energy security, including Indonesia’s dependence on fossil fuel imports, but also to attract investment in the upstream sector.
National Coordinator of Publish What You Pay Indonesia, Aryanto Nugroho, said that a clear vision of energy sovereignty is essential amid increasing global uncertainty.
“If this bill is not in sync with the fossil fuel reduction and energy transition agenda, Indonesia will continue to be trapped in global energy price shocks,” Aryanto said in a written statement on Tuesday (April 21, 2026).
Energy Security Deemed Still Fragile
Indonesia has been a net oil importer since 2008. National oil consumption has reached around 1.5 million barrels per day, while domestic reserves continue to decline.
This condition is considered increasingly vulnerable amid the geopolitical conflict in the Middle East, which has contributed to global energy price volatility.
The coalition of civil society organizations that are members of PWYP Indonesia believes that the Oil and Gas Bill must be a strategic instrument for addressing these vulnerabilities, not merely an administrative regulation.
The Indonesian House of Representatives (DPR RI) is currently deliberating the Oil and Gas Bill, a process that is considered relatively rapid. Following a meeting of the Legislative Body (Baleg) with Commission XII on April 13, 2026, the DPR is preparing to form a Working Committee (Panja) to continue deliberations.
However, several parties have noted that the Oil and Gas Bill was not included in the National Legislation Program (Prolegnas) yet was still submitted as a DPR initiative.
Indonesian Parliamentary Center researcher Arif Adiputro believes this step could set a bad precedent in the legislative process.
“The House of Representatives should focus on finalizing the Climate Change Control Bill and the New and Renewable Energy Bill, which have been included in the National Legislation Program,” he said.
Must be in line with the energy transition
The Oil and Gas Bill is also considered necessary to align with the energy transition agenda and national climate commitments. This regulation must not reinforce dependence on fossil fuels, including natural gas, which has high methane emissions.
In addition, the article regarding carbon capture and storage technology (*carbon capture*) is reminded not to be a justification for companies to continue increasing production without a commitment to reducing emissions.
The Oil and Gas Bill is also considered to still prioritize an extractive paradigm, including opening up exploration opportunities in protected forests and conservation areas.
Sylvi, a representative from the Indonesian Center for Environmental Law, assessed that the lack of alignment between oil and gas regulations and the climate agenda could increase Indonesia’s vulnerability to energy crises and climate change.
“Without strong synchronization between oil and gas regulations and the climate justice agenda, Indonesia risks losing momentum for sustainable development,” he said.
Governance and Corruption Risk
In addition to energy policy aspects, the Oil and Gas Bill is considered necessary to strengthen governance in the oil and gas sector, particularly regarding transparency and accountability.
PWYP Indonesia emphasizes the importance of transparency in the auction process and awarding of cooperation contracts, as well as public access to information in accordance with statutory provisions.
The coalition also highlighted the plan to establish a Special Oil and Gas Business Entity (BUK), which it believes requires close monitoring to prevent potential irregularities.
“We see a paradox. On the one hand, this sector is prone to corruption, while on the other, there are concerns about criminalization, which makes officials hesitant to make decisions. The Oil and Gas Bill must introduce a strong system of checks and balances,” said Aryanto.
Source: Kompas