Indonesia aims to officially legalize and activate community-managed oil wells by December 2025, marking a new milestone in empowering local economies. Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that the regulatory framework for these wells is nearly finalized, ensuring residents can operate without intimidation or legal uncertainty. He emphasized that this initiative aligns with President Prabowo Subianto’s directive to prioritize people’s welfare and regional prosperity under Article 33 of the Constitution.
The forthcoming Ministerial Regulation Number 14 of 2025 will guide the operation of approximately 45,000 community-managed wells, many of which have long been active without formal recognition. The management will involve cooperatives, regional-owned enterprises (BUMD), and MSMEs, all adhering to strict safety and environmental standards. The oil produced by these communities will be purchased by contractors at a minimum of 80% of the Indonesian Crude Price (ICP), ensuring fair compensation. This initiative is expected to not only enhance local economic independence but also promote responsible and sustainable energy production across Java, Sumatra, and other regions in Indonesia.
