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View all search resultsGovt identifies 45,000 community wells for development
The Energy and Mineral Resources Ministry has issued a landmark regulation legalizing the exploitation of community-owned wells.
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Two men look at a fire burning at an unregulated oil well on Sept. 12, 2025, in Gandu village, Bogorejo district, Blora regency, Central Java. (Antara/Gunawan)
T
he Energy and Mineral Resources Ministry has identified 45,000 community-owned oil wells with the potential for formalization and development in partnership with oil and gas contractors (KKKS).
Energy minister Bahlil Lahadalia said the data had been compiled by regional leaders before being inventoried by the Upstream Oil and Gas Regulatory Task Force (SKK Migas) and the ministry's oil and gas directorate general.
"We conducted a bottom-up inventory, from regents and mayors to governors. The result is approximately 45,000 potential wells currently managed by the community," he said on Thursday, as reported by Kontan.
"Other KKKS with refineries or processing facilities in the area will also be able to absorb oil from community wells within their respective work areas," he added.
In summer, the energy ministry issued a landmark regulation legalizing the exploitation of community-owned wells.
Enforced on June 10, Energy Ministry Regulation No. 14/2025 sets the price of crude oil from community wells purchased by state-owned energy giant Pertamina and KKKS, including industry majors ExxonMobil and PetroChina, at 80 percent of the Indonesian Crude Price (ICP) benchmark.
Speaking at the CNBC Indonesia Energy Corner event on Wednesday, deputy energy minister Yuliot Tanjung revealed that oil from these wells had previously been sold in processed form, a practice he described as “technically unsustainable, both in terms of safety and quality,” as quoted by CNBC Indonesia.
