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Indonesia legalizes community participation in oil production to boost energy resilience

Xinhua
| July 2, 2025
2025-07-02

JAKARTA, July 2 (Xinhua) -- The Indonesian government has officially enacted a new regulation to involve local communities in oil drilling efforts, particularly in old wells, as part of a broader strategy to boost national oil and gas production, which has been declining in recent years.

According to the ministerial regulation on the management of work areas to increase oil and natural gas production, the government will grant legal business permits for local enterprises to establish platforms or organizations that enable the participation of local communities living around the oil fields.

These community-based entities will participate in activities such as drilling and managing old wells.

The regulation aims to support Indonesia's energy resilience agenda and is one of the government's efforts to achieve energy self-sufficiency, said Deputy Minister of Energy and Mineral Resources Yuliot Tanjung.

"Our optimistic (production) target is around 10,000 to 15,000 barrels per day," Tanjung said in a press release on late Tuesday.

According to the Ministry of Energy and Mineral Resources, Indonesia's oil and gas production has continued to decline in recent years due to depleting reserves and exploration challenges. Enditem

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