New Requirements for Oil and Gas and Mining Contract Extensions

By Editorial Team 02/02/2023
Summary

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the next contract of work (CoW) extension will always require State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD) involvement. "We encourage downstream processing and BUMN and BUMD involvement. So, [we] can no longer give an extension without involving BUMN or BUMD, and the state must take the maximum role," Lahadalia said after a cabinet meeting discussing the extension of oil and gas and mining contracts on Tuesday.

In addition, President Joko Widodo gave three directives related to considering the extension of oil and gas and mining contracts in Indonesia. "First, everything goes through a good legal mechanism. Second, good economic calculations. Third, it must impact the interests of the country and the people," he said.

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