President Prabowo Subianto has called for sweeping regulatory simplification to attract investment and accelerate development in Indonesia’s energy sector. His remarks came during the opening of the 49th Annual Convention and Exhibition of the Indonesian Petroleum Association (IPA Convex 2025), held in Tangerang on Wednesday.
“I ask all regulatory bodies: simplify the regulations. I repeat—simplify the regulations,” Prabowo said firmly in his keynote speech.
He stressed that officials unwilling to implement reforms would be replaced. “Any official who refuses to simplify the regulations will be dismissed. There are many young people waiting for the opportunity to lead,” he added.
The President warned that overcomplicated regulations continue to hamper investment. He urged a shift away from outdated bureaucratic mindsets that hinder business processes.
“If something can be made difficult, why make it easy—that way of thinking must end. That mindset has no place in the Republic we love,” he said.
Prabowo also revealed that the government has established Danantara Indonesia, a new sovereign wealth fund vehicle, to support strategic investments in the energy sector—including both fossil fuels and renewables.
He welcomed industry efforts to support energy transition through technologies such as carbon capture and storage (CCS) and other innovations.
“Simplify all processes. Create the best possible climate for anyone willing to work—whether from abroad or from within the country,” he urged.
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Against the backdrop of rapid global change, Prabowo emphasized that Indonesia must remain adaptive and proactive. He voiced strong confidence in the country’s renewable energy potential, from geothermal to wind, supported by advancing technologies.
“We are very optimistic. Soon, we will not only be energy self-sufficient—we will again become a supplier of energy to the world,” he declared.
The President concluded his speech with a call for unity and collaboration to build a strong, efficient, and sovereign energy sector.
“I believe that through cooperation, collaboration, and common-sense policymaking, we will achieve the goals we aspire to,” he said.
Idle fields to be reassigned
Meanwhile, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government will reassign the management of several idle oil and gas fields to contractors who are truly capable and ready to develop them.
"Currently, there are 10 working areas with approved Plans of Development (PODs) that remain stagnant and undeveloped. These 10 areas alone have the potential to increase production by 31,300 barrels per day," Bahlil said at the IPA Convex on Wednesday.
He noted that the fields have a combined potential of 51 million barrels of oil and 600 billion cubic feet (BCF) of gas. With an estimated investment of around USD 1.8 billion, the projects could create up to 20,000 jobs, boost local supporting industries, and improve the welfare of surrounding communities.
Under Government Regulation No. 35/2004 on Upstream Oil and Gas Business Activities, and Ministerial Decree No. 110/2024 on Guidelines for the Return of Unutilized Potential Working Area Portions, the government may revoke the rights to underutilized areas and reassign them to contractors prepared to proceed.
“For those contractors who have already been granted authority but remain slow to act, I’m sorry—but by law, after five years we will revoke the rights and return them to the state. We will then offer the fields to other contractors who are ready to move forward. This will be done indiscriminately. With the President’s approval, this applies not only to private firms but also to state-owned enterprises,” Bahlil asserted in front of President Prabowo.
The Ministry of Energy and Mineral Resources has also identified 17 other fields with approved PODs that are making progress, though production may be delayed. These fields represent a total potential of 306 million barrels of oil and 18,351 BCF of gas. The ministry pledged to help accelerate development so that these resources can begin production as soon as possible.
Editing by Reiner Simanjuntak
