JakartaPost-July 2, 2025
The government aims to boost national oil output by tapping into community-operated oil wells, targeting an additional 15,000 barrels per day (bpd) by the end of the year. The initiative follows the enactment of Energy and Mineral Resources Minister Regulation No. 14/2025, which formally legalizes community wells and outlines a clear framework for cooperation with the upstream oil and gas industry. Before the issuance of the regulation, many local communities had been operating oil wells without permits or legal certainty. “Maybe in August we will begin partial lifting, but the goal is to reach 10,000 to 15,000 bpd by the end of the year,” deputy energy minister Yuliot Tanjung said during a press briefing in Jakarta on Tuesday, as reported by Kontan. The ministry has identified around 7,000 potentially productive community wells in Aceh, Jambi, South Sumatra, Central Java and East Java. A joint task force will be deployed by the ministry to carry out a one-month field inventory, identifying viable wells and assessing operational needs. The results of this data collection are expected by the end of July. The new rule introduces three cooperation models, which are collaboration between oil and gas contractors (KKKS) and partners in idle or active production assets; partnerships involving community wells; and the management of legacy wells under Energy and Mineral Resources Minister Regulation No. 1/2008. For community well operations, the regulation allows regional-owned enterprises (BUMD), cooperatives and micro, small and medium enterprises (MSMEs) to collaborate with KKKS. These groups may now legally operate or manage wells under a four-year probationary period, subject to review by the ministry’s Directorate General of Law Enforcement. Read more at:
