Minister of New Energy and Mineral Resources (ESDM), Bahlil Lahadialia, said he would continue the programs previously implemented by his predecessor Arifin Tasrif and vowed to take measures to increase the efficiency of oil and gas production.

“We will continue programs that have gone well. What is not perfect, we will make perfect,” said Bahlil after the handover ceremony at the ESDM Ministry on Monday, August 19, 2024.

“Based on the instructions of President Joko Widodo and President-elect Prabowo Subianto, I must also develop a strategy to increase Indonesia’s oil production, which is currently declining steadily,” he added.

The minister also said he would immediately prepare sites for the development of the country’s liquefied petroleum gas industry.

“Indonesia continues to import LPG. The ESDM Ministry will work with the Upstream Oil and Gas Regulatory Task Force (SKK Migas) and Pertamina to develop the LPG industry,” said Bahlil.

The new ESDM minister also said he would work to improve the regulation of investments in oil and gas production.

“We should improve on whether there are incentives to ensure that we remain competitive with other countries,” he explained.

“If Indonesia does not improve its regulation, the country will be left behind compared to countries that are already conducting exploration,” he added.

In the minerals and coal sector, he will continue the development of the downstream industry, Bahlil said.

“In the future, licensing will be more transparent, so there will be no more debates,” he said.

In the electricity sector, he will promote the development of renewable energy and the carbon capture and storage industry, Bahlil said.

Conflict of Iinterest

Bahlil rejected allegations that his appointment as Minister of Energy and Mineral Resources would create a conflict of interest with his position as a businessman.

“When I became a government official, I had given up all positions in my companies,” he said.