“The President ordered that matters concerning the people must be prioritized as part of the implementation of Article 33 of the 1945 Constitution. Thus, the legalization process will be accelerated,” Minister of Energy and Mineral Resources Bahlil Lahadalia said after meeting Prabowo in Jakarta.
Article 33 mandates that Indonesia’s economy be based on collective efforts, with the state controlling vital production sectors and natural resources for the greatest prosperity of the people.
Lahadalia said he reported to the president that he had visited several sites in South Sumatra, including Musi Banyuasin, which has around 22,000 community-run oil wells.
Each well produces about 2 barrels per day on average, he said, adding that this output is a valuable contribution to national energy security.
Regarding refinery projects, two of the 18 planned sites are in their final construction stage, while the rest are awaiting the completion of feasibility studies before implementation begins.
Lahadalia earlier said the government plans to start issuing licenses for community-run oil wells by late November 2025.
During a visit to Musi Banyuasin on October 16, he noted that the new Energy and Mineral Resources Minister’s Regulation No. 14/2025 grants legal recognition to oil wells managed independently by local communities.
Under the regulation, licenses will be issued to region-owned enterprises, cooperatives, and micro, small, and medium enterprises (MSMEs), enabling them to operate without legal uncertainty.
Oil produced by community-run wells will be purchased by state-owned oil and gas company Pertamina or Cooperation Contract Contractors (K3S) at 80 percent of the Indonesian Crude Price (ICP), Lahadalia said.
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Translator: Andi Firdaus, Raka Adji
Editor: Anton Santoso
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