Jakarta – The Ministry of Energy and Mineral Resources (ESDM) has responded to a proposal to establish a Special Business Entity (Badan Usaha Khusus/BUK) for the oil and gas sector, which is expected to take over the role of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).
The proposal is included in the Oil and Gas Bill, or RUU Migas, currently being deliberated by the House of Representatives (DPR). The bill is intended to replace Law No. 22 of 2001 on Oil and Gas. The DPR designated the Oil and Gas Bill as a legislative initiative in August 2026.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the government has yet to receive the official version of the Oil and Gas Bill finalized by the DPR. As a result, the ministry has not been able to fully examine the proposed structure of the BUK or determine how the new body would relate to SKK Migas.
“As for the Oil and Gas Bill itself, it has not yet been received by the government. Earlier, I coordinated with the Deputy Minister of State Secretary and asked whether it had already been sent by the DPR. It turns out that we have not received it yet. So I also cannot study it yet, because I don’t know which version was sent to the government, the version that has been finalized by the DPR,” Yuliot said when met at the DPR RI Complex in Jakarta, as quoted on Tuesday (September 1, 2026).
Although the government has not received the final draft, Yuliot acknowledged that officials are aware of the proposal to establish the BUK. He said the establishment of the new body is linked to a decision by the Constitutional Court (MK).
“So, the BUK is actually related to a decision by the Constitutional Court. We will see how it is implemented later. What happens to the role of the existing SKK, and then what happens with the BUK, so of course there will be a transition period. We will see first,” Yuliot explained.
This means that if the BUK is ultimately established, the transition from SKK Migas would not take place immediately. The government would first need to determine how the functions of the two institutions would be divided and how the transition would be carried out once the new regulation takes effect.
BUK Migas to Report Directly to the President
Yuliot also shared preliminary information regarding the proposed position of the BUK within the government structure. The new entity is reportedly expected to report directly to the President.
“So, let me check this first. Based on the information I just received, the plan is for the BUK to be directly accountable to the President,” he said.
Under the circulating draft, the BUK is designed to have broader authority over upstream oil and gas management. The body is reportedly expected to oversee working areas, production-sharing contract management, upstream oil and gas assets and revenues, as well as other functions related to upstream activities.
However, the government has not officially confirmed the details of the proposed structure and authorities because it has yet to receive the final version of the Oil and Gas Bill.
