The Association of Oil, Gas, and Renewable Energy Producing Regions\n(ADPMET) is pushing for the refinement of the Ministry of Energy and\nMineral Resources Regulation Number 1 of 2025 regarding the 10 per cent\nparticipating interest (PI) right for Regional-Owned Enterprises (BUMD).\nThis step is deemed necessary to overcome various obstacles that\ncontinue to hinder the implementation of the policy.<\/p>\n
ADPMET Secretary General Andang Bachtiar stated that, to date, the\nrealisation of the 10 per cent PI remains far below expectations. Out of\napproximately 79 oil and gas blocks that should grant participation\nrights to BUMDs, only about 13 blocks have been realised.<\/p>\n
\u201cFrom approximately 79 oil and gas blocks that should provide a 10\nper cent PI, only about 13 have been successfully realised. This means\nthere are still many hurdles, both in the negotiation process and in\nimplementation. This is what we must improve together,\u201d said Andang\nduring a Focus Group Discussion (FGD) organised by ADPMET alongside PT\nJakarta Offshore Energy (JOE) at Taman Ismail Marzuki (TIM), Jakarta, on\nMonday (29\/6\/2026).<\/p>\n
According to Andang, the primary objective of granting the 10 per\ncent PI is not solely to increase regional revenue. The policy also aims\nto provide space for local governments to be involved in the management\nof oil and gas blocks, including gaining access to production\ninformation, budgets, and business processes.<\/p>\n
Andang noted that there are still several provisions that have the\npotential to cause multiple interpretations, which could trigger legal\nissues when applied in the field.<\/p>\n
\u201cThe need for improvement is not because the regulation opens doors\nfor corruption, but because there are still clauses that are open to\nmultiple interpretations, which can lead to differing interpretations\nduring implementation,\u201d said Andang.<\/p>\n
He explained that the FGD was held to gather input from oil and gas\nproducing regions, BUMDs that hold the 10 per cent PI, and BUMDs that\nare still in the process of obtaining those rights. The results of the\ndiscussion are expected to serve as material for the preparation of an\nacademic paper for regulatory refinement.<\/p>\n
\u201cOur hope is that recommendations will emerge that can serve as an\nacademic paper as a basis for regulatory refinement, so that the\nimplementation of the 10 per cent PI can run more effectively,\u201d said\nAndang.<\/p>\n
The Director of PT Jakarta Offshore Energy (JOE), Astar Simorangkir,\nstated that BUMDs that have been managing the 10 per cent PI still face\nvarious challenges because the implementing regulations are deemed not\nto have regulated the mechanism in detail.<\/p>\n
\u201cThe problem is, the existing rules do not specifically regulate how\nimplementation works in the field. As a result, there are still several\ngrey areas that can lead to legal issues during audits,\u201d said Astar.<\/p>\n
According to Astar, several provisions, including those regarding the\nmaximum limit of the 10 per cent PI, still require clarification to\navoid differing interpretations. He hopes that the recommendations from\nthe FGD can strengthen governance while providing legal certainty for\nall stakeholders.<\/p>\n
\u201cWe want all stakeholders to have the same perspective so that the\ngovernance of the 10 per cent PI becomes increasingly accountable,\nprofessional, and provides optimal benefits for both the region and the\ncountry,\u201d said Astar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/10-participating-interest-realisation-still-low-adpmet-calls-for-regulatory-improvement-1782723126", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }