The Essence of the Expansion of Oil and Gas Management Authority|

in STEEM FOR BETTERLIFE2 months ago



The Ministry of Energy and Mineral Resources (ESDM) has, for the first time, granted Aceh permission to participate in the management of oil and gas resources in the maritime zone 12 to 200 miles from the coastline. This means that Aceh's opportunities for prosperity from the oil and gas sector are increasingly wide open, exceeding the privileges stipulated in Law Number 11 of 2006 concerning the Governance of Aceh.

Aceh Regional Secretary, Muhammad Nasir Syamaun, stated that the expanded authority is outlined in the Ministry of ESDM letter Number T-465/MG.04/MEM.M/2025, dated October 23, 2025, addressed to Aceh Governor Muzakir Manaf. This decision is a follow-up to the Aceh Governor's letter dated March 11, 2025, requesting the expansion of oil and gas management authority beyond 12 nautical miles.

"This decision is a concrete result of the synergy between the Aceh Government, the Regional People's Representative Council (DPRA), the Aceh Oil and Gas Management Agency (BPMA), and other community elements who have consistently championed regional rights," said Nasir, who believes the expansion of authority is not merely a technical matter of oil and gas management, but a symbol of recognition of Aceh's uniqueness.

Following up on this decision, Nasir said, the Aceh Government will strengthen cooperation in the oil and gas sector with several foreign investors, including Japan, which is interested in exploring oil and gas cooperation opportunities in Aceh. Aceh can now participate in upstream oil and gas activities in the high seas through cooperation between the Special Task Force for Upstream Oil and Gas (SKK Migas) and the Aceh Oil and Gas Management Agency (BPMA).

This expansion of authority is only good news on paper. The Aceh Government must demonstrate this opportunity through concrete actions, not just ceremonies or political rhetoric.

The Aceh Government needs to immediately strengthen the capacity of its human resources and institutions, including the technical services and the BPMA. As an institution carrying out operational and supervisory functions, the BPMA must be professional, transparent, and authoritative. Collaboration with relevant higher education institutions—such as Syiah Kuala University, Malikussaleh University, and Lhokseumawe State Polytechnic—needs to be strengthened to ensure the availability of experts in petroleum engineering, geology, and energy economics.

Furthermore, the Aceh Government must develop a comprehensive oil and gas roadmap for Aceh for the short, medium, and long term. This document should include exploration, production, revenue, and investment strategy targets, and be integrated with the regional development plan and the vision and mission of Governor Muzakir Manaf and Deputy Governor Fadhlullah (Dek Fad). Aceh's oil and gas economic scheme must be effectively implemented so that the people truly benefit from the promise of prosperity.

For the long term, Aceh must also prepare for a post-oil and gas economic transition to avoid becoming trapped in dependence on non-renewable natural resources. This issue has arisen several times, particularly as oil and gas production at the Arun Field nears its end. However, experience shows that despite the blueprint for utilizing the PT Arun NGL refinery, its implementation has been suboptimal, and the planned construction of a fuel refinery in Arun has never materialized.

The various obstacles faced in the oil and gas sector in the past should serve as valuable lessons for building more independent, transparent, and sustainable energy governance. The Aceh government needs to learn from the dynamics of previous projects in Arun, Lhokseumawe, and Block B North Sumatra Offshore—that great potential does not automatically bring prosperity without clean, professional, and pro-people governance.

This expansion of authority should be a turning point for Aceh to manage its natural resources with principles of justice and sustainability. This momentum is not simply about privileges within the framework of autonomy, but about Aceh's ability to demonstrate itself as a region capable of managing its resources professionally and sovereignly.[]



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