MEDAN | INDATANEWS.COM – The Vice Governor of North Sumatra, Surya, has emphasized the need to streamline bureaucratic procedures to accelerate permits and recommendations for investments in the oil and gas sector. According to him, faster processes are essential to ensure investments are realized promptly and deliver direct economic benefits to local communities.
The statement was delivered during an audience with representatives of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas) and Cooperation Contract Contractors (KKKS), held at the North Sumatra Governor's Office on Jalan Diponegoro No. 30, Medan, on Monday, May 11, 2026.
Streamlining Energy Investment Approvals
Read Also: North Sumatra Launches ‘Learning Hub’ to Strengthen Civil Servant Competencies Surya reaffirmed the provincial government's commitment to ensuring smooth investment flows in North Sumatra's oil and gas sector. He called for accelerated administrative procedures so that planned projects can be implemented without delay.
"All points discussed will be recorded and submitted to the Governor. We are pushing for faster processing of permits so that investments can be executed in a timely manner," Surya said.
He also urged Pertamina and relevant authorities to support the legalization of community-operated old oil wells. According to him, this step is crucial to ensure that production activities are safe, lawful, and economically beneficial for local residents.
"We want previously illegal oil wells to be registered and legalized so production can be improved and the community can benefit more. Although the process in North Sumatra appears slower compared to other provinces, coordination here is actually stronger and violations remain under control," he added.
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Reorganizing Old Oil Wells for Community Benefit
Surya further stressed the importance of restructuring and managing old oil wells to provide legal certainty and clearer economic prospects for communities. He highlighted the need for comprehensive data collection and regulation of wells previously operating without official permits.
Read Also: Pertamina Expands PGTC 2026 to Empower Future Energy Leaders These measures are expected not only to increase production capacity but also to create a more sustainable and orderly traditional oil and gas sector in the province.
SKK Migas Plans Multi-Million Dollar Investment
Head of SKK Migas North Sumatra Representative Office, CW Wicaksono, stated that North Sumatra plays a strategic role in Indonesia's national oil and gas industry, contributing around 30 percent of total production.
He explained that approximately 60 percent of operational activities from 900 to 1,000 wells are located in the region. SKK Migas is therefore planning significant investments in North Sumatra.
Read Also: North Sumatra Governor Plans Public Ban on E-Cigarettes Over Drug Concerns "We are working to bring investments of around 300 million US dollars into this region. Support from the regional government is crucial, especially as investment challenges between 2025 and 2030 are expected to become more complex," Wicaksono said.
He also noted that SKK Migas will facilitate study visits for regional governments and state-owned enterprises to Jambi and South Sumatra to learn models of community-based management of old oil wells.
SIGNIFICANT OIL AND GAS CONTRIBUTION FROM NORTH SUMATRA: SKK Migas Sumbagut Head CW Wicaksono explains North Sumatra's major contribution to national oil and gas production and outlines planned investments in the region. (PHOTO: Doc. North Sumatra Communication and Information Office)
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Pertamina Deputy General Manager Reza Rahardian revealed that the company, in collaboration with Japan's Japex, will develop an upstream project in Langkat Regency, particularly in Bubun Village, Tanjungpura District.
Two new wells are scheduled to be drilled starting August 2026, with production expected to begin in June 2027.
Additionally, Pertamina continues to record positive progress in Indonesia's oldest oil and gas field in Pangkalan Susu. Following successful testing in Pulau Panjang, the company plans two additional gas wells in Hamparan Perak, Deli Serdang, to strengthen industrial gas supply in North Sumatra. (IDNC)
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