Bisnis.com, JAKARTA — The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has revealed that the transfer of a 10% participating interest (PI) to local governments has only been realized in 11 oil and gas work areas (WKs). Meanwhile, the process for transferring the 10% PI in another 68 WKs is still underway.
The 10% PI represents a maximum 10% share ownership in oil and gas contracts that contractors are mandated to offer to regional-owned enterprises (BUMDs). This requirement is stipulated in the Minister of Energy and Mineral Resources Regulation (Permen ESDM) Number 37 of 2016, which governs the offering of a 10% Participating Interest in Oil and Gas Work Areas. This policy aims to foster greater local participation in resource management.
According to SKK Migas Head Djoko Siswanto, only 11 WKs have successfully completed the 10% PI transfer to local governments, while a significant 68 WKs remain in various stages of the process. “Out of the 60-odd WKs reported, only 2% are still in process. Eleven WKs have been completed,” he stated during a hearing with Commission VII of the House of Representatives (DPR RI) on Thursday, November 13, 2025.
The 11 work areas where the 10% PI transfer has been finalized include: the ONWJ WK to the Provincial Governments of DKI Jakarta and West Java; the Mahakam WK to the East Kalimantan Provincial Government; the Siak WK to the Riau Provincial Government; the Ketapang WK to the East Java Provincial Government; and the Sebuku WK to the Provincial Governments of South Kalimantan and West Sulawesi. Furthermore, transfers were completed for the Southeast Sumatra WK to the Provincial Governments of DKI Jakarta and Lampung; the Rokan WK to the Riau Provincial Government; the Kampar WK to the Riau Provincial Government; the West Madura Offshore WK to the East Java Provincial Government; the Mahato WK to the Riau Provincial Government; and the Sanga-Sanga WK to the East Kalimantan Provincial Government.
For the remaining 68 WKs currently in progress, their statuses vary. Thirteen WKs are still in the Plan of Development (PoD) I stage, awaiting governors to appoint their respective BUMDs. Another 48 WKs are undergoing the 10% PI offering process. Three WKs are at the application stage for transfer, and four WKs are in the process of submission to the Minister of Energy and Mineral Resources for approval.
The strategic importance of transferring the 10% PI to local governments cannot be overstated. It is designed to enhance national and regional involvement in the management of valuable natural resources. This initiative also seeks to facilitate technology and capacity transfer to BUMDs and national companies, ensuring a more equitable distribution of economic benefits derived from oil and gas activities across the regions.
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Summary
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reports that only 11 oil and gas work areas (WKs) have finalized the transfer of a 10% participating interest (PI) to local governments. This 10% PI is a maximum share ownership contractors are mandated to offer regional-owned enterprises (BUMDs) under Minister of Energy and Mineral Resources Regulation Number 37 of 2016, aiming to boost local participation in resource management. A substantial 68 WKs are still in various stages of this transfer process.
The completed transfers include significant WKs such as ONWJ, Mahakam, and Rokan. For the remaining WKs, statuses range from awaiting BUMD appointments by governors to undergoing the 10% PI offering process or seeking ministerial approval. This policy is crucial for enhancing national and regional involvement in natural resource management, facilitating technology transfer, and ensuring a more equitable distribution of economic benefits across regions.
