Indonesia aims for state firm to handle upstream oil and gas business.

Indonesia plans to set up or designate a state firm to carry out upstream oil and gas activities, to try to curb red tape and regulations that are blamed for hindering investment in Southeast Asia's biggest economy.

The government of President Joko Widodo is seeking to boost economic growth and create jobs in sectors such as energy, where investors often cite regulatory uncertainty, bureaucratic hurdles and strict labor rules as deterrents to development.

The plan was included in a new omnibus bill submitted to parliament and made public late on Wednesday. It would require private companies in the sector to conduct business with a "special state firm" through a...