Bahlil proposes tax payment deferral for Indonesian oil and gas exploration
The energy minister also outlined a proposed body to handle contractors’ permits under legislation replacing the 2001 oil and gas law.
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has proposed allowing oil and gas contractors to postpone tax payments during exploration, as part of changes being considered under a new oil and gas bill.
Speaking at the opening of Forek Hulu Migas 2026 in Jakarta on 28 October 2026, Bahlil said the measure was intended to improve investment conditions in upstream oil and gas. He described allowing contractors still conducting exploration to hold off on paying tax.
Bahlil said the government’s inventory of issues for the bill was 90% complete, with licensing certainty a central concern. The legislation would replace Law No. 22 of 2001 on oil and gas.
The proposed special oil and gas business entity, BUK Migas, would handle permits so production-sharing contractors could use a single licensing channel. Bahlil said contractors currently had to approach multiple ministries after winning tenders, prolonging licensing and exploration. Under the proposed arrangement, BUK Migas would manage those processes.
