Community Wells to Be Incorporated into the Oil and Gas RUU

Commission XII of the House of Representatives of the Republic of Indonesia (Dewan Perwakilan Rakyat – “DPR”) has begun finalizing deliberations on the Draft Law on Oil and Gas (Rancangan Undang-Undang Migas – “RUU Migas”), which amends Law No. 22 of 2001 on Oil and Gas, as amended by Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 22/2001”). The Chairman of Commission XII of the DPR, Bambang Patijaya, stated that several parliamentary factions have committed to completing the deliberation of the RUU.

“Yes, it will be finalized soon. This has in fact been a long-standing task. Several factions within Commission XII are committed to finalizing it promptly,” Bambang told Hukumonline.

One of the proposed amendments is the incorporation of provisions on the management of oil wells by the community through Cooperatives, Micro-, Small-, and Medium-scale enterprises (“MSMEs”), and Regionally Owned Enterprises (Badan Usaha Milik Daerah – “BUMD”), which have previously been regulated under Regulation of the Minister of Energy and Mineral Resources No. 14 of 2025 on Cooperation in the Management of Portions of Working Areas for the Enhancement of Oil and Gas Production (“Permen ESDM 14/2025”).

“There have been inputs suggesting that this regulation be given statutory legal force,” he said.

In addition, the RUU Migas also regulates the establishment of an oil and gas funding agency (Petroleum Fund) and further clarifies the status of the Special Business Entity (Badan Usaha Khusus – “BUK”). Bambang confirmed that the RUU will amend several provisions of the existing Oil and Gas Law.