ESDM Prepares Regulation of the Minister on Business Activity Standards

The Ministry of Energy and Mineral Resources (“ESDM”) is preparing Draft Regulation of the Minister of ESDM on Business Activity Standards for the Organization of Risk-Based Business Licensing in the ESDM Sector. Secretary-General of the Ministry of ESDM Erani Yustika stated that the regulation is currently under internal discussion and being coordinated by Deputy Minister of ESDM Yuliot Tanjung.

“It is currently being discussed and led by the Deputy Minister,” Erani told Hukumonline.

The new draft Regulation of the Minister of ESDM broadly regulates two main categories of legal status for business actors, namely Business Licensing (“PB”) and Business Licensing to Support Business Activities (“PB UMKU”). These regulations cover business activity standards across all ESDM sectors, ranging from Oil and Natural Gas, such as cooperation contracts, processing, pipeline transportation, storage, trading, to carbon capture and storage (“CCS”) activities.

Electricity covers generation, transmission, distribution, and the sale of electricity (including EV charging stations [SPKLU]/public EV charging stations [SPBKLU]), as well as supporting electricity services. Minerals and Coal cover Mining Business Licenses (“IUP”), Special IUPs, Community Mining Licenses (IPR), and mining services. New, Renewable, and Energy Conservation (EBTKE) covers geothermal energy, biofuels, biogas, and waste-to-energy management, as well as geology specifically regulated under the scope of the PB UMKU, such as permits related to groundwater exploitation.