ESDM Consolidates Risk-Based Draft Regulation of the Minister

The Ministry of Energy and Mineral Resources (“ESDM”) is ensuring the acceleration of the drafting of regulation of the Minister of ESDM (“PermenESDM”) derived from Regulation of the Government No. 28 of 2025 (“Regulation 28/2025”) on the Organization of Risk-Based Business Licensing (“PBBR”).

“It is currently being worked on. As far as I know, the Deputy Minister is consolidating to accelerate the Regulation of the Minister,” said the Secretary-General of the Ministry of Energy and Mineral Resources, Ahmad Erani Yustika, to Hukumonline.

Erani confirmed that adjustments are being made to a number of licensing provisions in the ESDM sector in the draft PermenESDM. In the oil and gas sector (“Migas”), the changes cover licensing activities from upstream to downstream. For example, in the upstream oil and gas sector, Carbon Capture and Storage (“CCS”) licensing outside the Cooperation Contract scheme is divided into three new permits. Namely, the Target Injection Zone (“ZTI”) Exploration Permit, the Carbon Storage Operation Permit, and the Carbon Transportation via Pipeline Permit.

The ZTI Exploration Permit is a permit to conduct exploration to find potential carbon storage areas, while the Carbon Storage Operation Permit is a permit for the injection, maintenance, and monitoring of carbon storage facilities. On the other hand, the Carbon Transportation Permit via Pipeline is a permit for the construction and operation of pipelines to transport carbon.