ESDM to Regulate the Use of AI in Oil and Gas Data Processing

The Ministry of Energy and Mineral Resources (“ESDM”) is currently drafting the amendment to Regulation of the Minister of ESDM No. 7 of 2019 on the Management and Utilization of Oil and Gas Data, as amended by Regulation of the Minister of ESDM No. 1 of 2022 (collectively referred to as “Regulation 7/2019”).  One of the proposed changes in the Draft Regulation of the Minister of ESDM (“Draft Regulation”) pertains to the scope for the use of artificial intelligence (“AI”) in the processing of oil and gas data conducted via cloud computing systems.

“One of the key revisions in Regulation 7/2019 is opening the door for data processing using AI,” said Mamik Cahyono, Inspector of Oil and Gas at the Directorate-General of Oil and Gas, Ministry of Energy and Mineral Resources.

In the regulation currently being drafted, the government will regulate data processing, which includes processing, reprocessing, value-added enhancement, integration, and data analysis. As AI usage is generally cloud-based, the government deems it necessary to establish data classification that prioritizes risk mitigation. All data processed through AI technology will be required to have a backup system and be categorized by risk level to ensure that the protection and security of state data remain safeguarded.