Indonesia tightens control over oil, gas extraction

The move comes amid rising global oil prices, which have increased the urgency for Indonesia to strengthen energy reserves and optimise domestic supply.

Jakarta (VNA) – The Indonesian Government is moving swiftly to establish a special task force to curb illegal oil drilling and strengthen oversight of unlicensed oil wells across the country.

Director of Certain Crimes at the National Police Criminal Investigation Agency (Bareskrim) Brigadier General Mohammad Irhamni announced on April 8 that the move comes amid rising global oil prices, which have increased the urgency for Indonesia to strengthen energy reserves and optimise domestic supply.

Irhamni stressed that Indonesia must ensure energy security while addressing many illegal oil wells that remain in operation, which not only lead to resource losses but also pose significant safety risks.

The task force will be jointly deployed by the Indonesian National Police, the upstream oil and gas special task force (SKK Migas), the Ministry of Energy and Mineral Resources, and state-owned energy giant Pertamina. It will focus on managing and handling illegal oil wells in several key areas, particularly Sumatra and Kalimantan, where unregulated drilling activities have persisted for years.

Notably, the Indonesian Government is also considering a conditional legalisation mechanism for certain oil wells managed by local communities. Special Staff to the Minister of Energy and Mineral Resources Rudy Sufahriadi said these wells could be acquired and officially managed by Pertamina if cooperation agreements are reached.

According to Sufahriadi, wells that are legalised will serve as an additional supply source for Pertamina for up to four years. However, no new wells will be allowed under the policy, which focuses solely on regulating and managing existing ones.

Indonesian authorities hope that establishing the task force will help reduce resource losses and boost domestic oil supply, while improving governance in the oil and gas sector amid ongoing volatility in global energy markets./.

VNA

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