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Key Regulatory Agencies in Indonesia’s Energy Sector
The energy sector in Indonesia is regulated by several principal agencies, each with distinct responsibilities. The principal agencies that regulate the energy sector are set out below.
Ministry of Energy and Mineral Resources
Directorate General of Oil and Natural Gas
The Directorate General of Oil and Gas is tasked with formulating and implementing policies in the field of development, control, and supervision of oil and gas activities.
Directorate General of Mineral and Coal
The Directorate General of Mineral and Coal is tasked with formulating and implementing policies in the field of development, control, and supervision of mineral and coal activities.
Directorate General of Electricity
The Directorate General of Electricity is tasked with organising the formulation and implementation of policies in the fields of development, business, engineering, work safety, and the environment in the energy field.
Directorate General of New, Renewable Energy and Energy Conservation
The Directorate General of New, Renewable Energy and Energy Conservation formulates and implements policies in the field of guidance, control, and supervision of geothermal activities, bioenergy, various forms of new and renewable energy, and energy conservation.
Indonesian Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)
SKK Migas oversees upstream oil and gas business activities based on cooperation contracts. The establishment of this institution is intended to ensure that the extraction of state-owned oil and gas natural resources provides maximum benefits and revenues for the state and the people.
Downstream Oil and Gas Regulatory Agency
This agency regulates and determines the availability and distribution of fuel, national fuel reserves, joint utilisation of fuel transportation and storage facilities, natural gas transportation rates through pipelines, natural gas prices for households and small businesses, natural gas transmission, and distribution operations.
Navigating Indonesia’s energy sector requires a comprehensive understanding of the roles and jurisdictions of these principal regulatory agencies. Their coordinated efforts ensure the development, control, and supervision of the country’s diverse energy resources, contributing to national energy security and sustainability.
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