Ministry of Environment Requests Clarification of ESDM Regulations

The Ministry of Environment (“LH”) has requested further clarification from the Ministry of Energy and Mineral Resources (“ESDM”) in relation to the division of responsibilities for environmental restoration under the community oil well policy. This is stipulated in Regulation of the Minister of ESDM No. 14 of 2025 on Cooperation in the Management of Parts of Working Areas to Increase Oil and Gas Production (“Regulation 14/2025”).

“In implementing the community oil well policy, the potential for environmental pollution needs to be anticipated,” said the Director of Hazardous and Toxic Waste Management (“B3”) at the Ministry of LH, Farid Muhammad. According to him, currently, Regulation 14/2025 does not regulate the division of restoration duties in the event of environmental pollution.

Farid explained that although Article 13 paragraph (5) in Regulation 14/2025 covers the role of contractors together with Regionally-Owned Enterprises (“BUMD”), cooperatives, and Micro-, Small- and Medium-Scale Enterprises (“UMKM”) in environmental restoration duties, more detailed regulations are still needed regarding the division of duties and sources of funding for restoration so as not to cause overlapping obligations in the field.

“Further clarity is needed in the regulations on the division of duties between contractors and BUMDs, cooperatives, and UMKMs related to waste management,” he said.

Referring to Regulation of the Government No. 21 of 2021 on the Organization of Spatial Planning (“Regulation 21/2021”) and Regulation of the Minister of Environment and Forestry No. P.101/MENLHK/SETJEN/KUM.1/11/2018 Tahun 2018 (“Regulation 101/2018”) on Guidelines for the Restoration of Land Contaminated by B3 Waste, contractors as producers of B3 waste must implement mitigation and restoration of environmental functions. Every restoration activity is also required to have an Environmental Function Restoration Plan (“RPFLH”) document issued by the Ministry of LH.