Inp.polri.go.id - Jakarta.  Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has announced the formation of a task force to address issues in upstream oil and gas (migas) investment.

“We are establishing a task force to review and streamline the regulations for upstream oil and gas,” he said on Wednesday (31/7/2024).

Minister Luhut highlighted that complex regulations have delayed approvals, complicating investment in the upstream sector.

“Regulations should not be convoluted or cause unnecessary delays in approvals,” he said, as quoted by antaranews.com..

Minister Luhut noted that outdated regulations are a legacy from when oil and gas exploration was simpler. 

“Now, many resources are offshore or in deep water, and regulations haven’t kept pace,” he added.

The task force will work on revising these regulations to attract more investment. Minister Luhut criticized Indonesia’s incentives as less competitive compared to those offered by African countries.

“We need to make our regulations and incentives more attractive,” he said.

(mg/inp/pr/nm)