Jakarta. The upstream oil and gas sector will be excluded from the government’s newly announced one-stop natural resource export governance system, Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday.

Bahlil’s statement was aimed at addressing concerns among oil and gas contractors over investment certainty and regulatory stability following President Prabowo Subianto’s announcement of tighter state oversight of commodity exports.

“Based on objective and measurable considerations, the president ultimately decided that the regulation will not apply to the upstream oil and gas sector,” Bahlil said in Tangerang, Banten.

The clarification comes as investors closely monitor Prabowo’s expanding role for Danantara in overseeing strategic sectors of the Indonesian economy, particularly commodities and natural resources.

Hours earlier, Prabowo told parliament that the government would establish a special agency under Danantara Indonesia to oversee and control exports of natural resource commodities such as crude palm oil and coal.

The president said the policy was intended to prevent state revenue leakages estimated at as much as $150 billion annually.

Bahlil explained that the oil and gas sector requires long-term investment certainty, particularly for projects that have already been operating for many years, making it necessary to exclude the industry from the new framework.

“So there is no need for investors to worry -- business operations will continue as usual,” he said.

According to Bahlil, the government also does not plan to tighten rules requiring energy companies to retain export earnings within Indonesia.

He said Prabowo believes oil and gas companies operating in partnership with the government have conducted business professionally and should not be viewed with suspicion.

“These partner companies are all reputable businesses and do not need to be treated with suspicion. Therefore, they are still free to utilize their export earnings,” Bahlil said.

He added that the exemption was granted after the government received feedback from oil and gas companies seeking greater regulatory certainty for investment in Indonesia.