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Pertamina makes first-ever purchase of crude from community-managed well in Jambi

Pertamina made its first purchase of crude oil produced by a community-managed operation in Jambi, since a 2025 ministerial regulation was enacted to formalize previously illegal small-scale operators.

Maudey Khalisha (The Jakarta Post)
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Fri, January 2, 2026 Published on Jan. 1, 2026 Published on 2026-01-01T14:24:34+07:00

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Fresh channel: Deputy Energy and Mineral Resources Minister Yuliot Tanjung (second right, front) officiates a handover ceremony for the purchase of crude oil from a community-managed well by state-owned oil and gas giant Pertamina on Dec. 31, 2025, at subsidiary Pertamina EP’s Tempino oil storage facility station in Jambi. Fresh channel: Deputy Energy and Mineral Resources Minister Yuliot Tanjung (second right, front) officiates a handover ceremony for the purchase of crude oil from a community-managed well by state-owned oil and gas giant Pertamina on Dec. 31, 2025, at subsidiary Pertamina EP’s Tempino oil storage facility station in Jambi. (ESDM/- )

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tate-owned oil and gas holding company Pertamina has made its first purchase of crude oil produced by a community-managed well, as part of the government’s policy to boost national oil production by legalizing the previously illicit practice.

On Wednesday, Deputy Energy and Mineral Resources Minister Yuliot Tanjung officiated the purchase of 240 barrels of crude from PT BSE, which represents a group of micro, small and medium enterprises (MSMEs) in Kota Baru, Jambi.

“Hopefully, this inaugural activity will serve as a model for governance and legality for community-managed oil wells nationwide,” Yuliot said at the Tempino oil storage facility in Jambi, which is managed by the energy giant’s exploration and production arm, Pertamina EP.

The minister said the formalization of previously illegal wells would allow the government to provide technical guidance and enforce production standards to ensure safe and environmentally responsible operations while also driving grassroots economic activity.

“This governance strengthening [effort] is aimed at not only boosting national oil production but also contributing to regional revenues, particularly in Jambi,” he said.

Read also: Govt identifies 45,000 community wells for development

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Yuliot added that output from the pilot community-based operation was expected to rise as existing wells were optimized toward a target of 1,000 barrels per day (bpd).

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