November 11, 2025 | 07:51 pm
TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, said the regulation and legalization of community-managed oil wells is nearly finished, with a target to operate by December this year.
"The wells are there, the oil is there, but the people are often intimidated by certain parties. Starting in December, InsyaAllah, they can work peacefully," said Bahlil during a working meeting with House XII Commission on Tuesday, November 11, 2025.
Bahlil said the government expedites the drafting of a legalization instrument for about 45,000 traditional oil wells that have been managed by residents. For decades, these activities have been conducted without clear legal provisions and have often faced intimidation and law enforcement risks.
He mentioned that the regulations are being formulated after being greenlit by President Prabowo Subianto. "The President said, if it's good for the people, good for the region, and aligns with Article 33 [of the Constitution], then do it. Don't back down," he stated.
The government stipulates these rules through Ministerial Regulation Number 14 of 2025, which outlines the management of community-managed oil wells. Under this scheme, management is carried out by cooperatives, regional-owned enterprises (BUMD), or micro, small, and medium enterprises (MSMEs) with strict safety and environmental supervision standards.
The community-produced oil must be purchased by contractors at a minimum price of 80 percent of the Indonesian Crude Price (ICP). "I encourage local communities to be able to manage their own wells, but work safety and environmental protection must be maintained," Bahlil said on a separate occasion in Jakarta on October 24, 2025.
Data from the Ministry of Energy and Mineral Resources indicates that there are around 45,000 community-owned oil wells scattered in several regions, especially in Java and Sumatra. Many of them have become targets of law enforcement officers and brokers due to unclear legal status.
Alif Ilham Fajriadi contributed to the writing of this article
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