The SKK Migas of Indonesia

SKK Migas – Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi – is a special task force that implements the production sharing contracts, develops the oil and gas upstream business and supervises the activities of the production sharing contractors in Indonesia.

SKK Migas is an institution created by the government of Indonesia based on the presidential regulation “Perpres Nomor 9 Tahun 2013 on the development and management of upstream oil and gas activities”.

SKK Migas is tasked to manage and supervise the upstream oil and gas activities – exploration, drilling, field development, and production – based on the production sharing contract system. It is established with the mission to ensure the exploration and production of the oil and gas will benefit the country and the people of Indonesia.

Here are the functions of SKK Migas:

  • Give considerations and recommendations to the Minister of Energy and Mineral Resources of Indonesia regarding the preparations and tenders of oil and gas work areas
  • Sign production sharing contracts
  • Study the development plan of a new oil and gas field in a work area, and submit the development proposal of the production sharing contractor for approval by the Minister of Energy and Mineral Resources
  • Give approval on the field development plan submitted by production sharing contractors
  • Approve the work program and budget of production sharing contractors
  • Monitor the operation and progress made by production sharing contractors and submit reports to the Minister of Energy and Mineral Resources
  • Appoint sellers of the produced oil and gas that will benefit the country.

These functions were originally carried out by BPPKA, a department under Pertamina, when the production sharing contract system was introduced in 1966. BPPKA (Badan Pembinaan Pengusahaan Kontraktor Asing) was later replaced by BP Migas. BP Migas later became SKK Migas in 2013.

To best serve and support the activities of oil operators around the country, SKK Migas has five field offices. They are:

  1. SKK Migas Sumatera Bagian Utara located in Pekanbaru
  2. SKK Migas Sumatera Bagian Selatan located in Palembang
  3. SKK Migas Kalimantan and Sulawesi located in Balikpapan
  4. SKK Migas Jawa, Bali, Madura dan Nusa Tenggara located in Surabaya
  5. SKK Migas Wilayah Papua dan Maluku located in Sorong

The current head of SKK Migas is Mr. Dwi Soetjipto. Its head office is located at Wisma Mulia, Jalan Gatot Subroto Kav. 42, Jakarta, Indonesia.

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