10% Participating Interest Realisation Still Low, ADPMET Calls for Regulatory Improvement

The Association of Oil, Gas, and Renewable Energy Producing Regions (ADPMET) is pushing for the refinement of the Ministry of Energy and Mineral Resources Regulation Number 1 of 2025 regarding the 10 per cent participating interest (PI) right for Regional-Owned Enterprises (BUMD). This step is deemed necessary to overcome various obstacles that continue to hinder the implementation of the policy.

ADPMET Secretary General Andang Bachtiar stated that, to date, the realisation of the 10 per cent PI remains far below expectations. Out of approximately 79 oil and gas blocks that should grant participation rights to BUMDs, only about 13 blocks have been realised.

“From approximately 79 oil and gas blocks that should provide a 10 per cent PI, only about 13 have been successfully realised. This means there are still many hurdles, both in the negotiation process and in implementation. This is what we must improve together,” said Andang during a Focus Group Discussion (FGD) organised by ADPMET alongside PT Jakarta Offshore Energy (JOE) at Taman Ismail Marzuki (TIM), Jakarta, on Monday (29/6/2026).

According to Andang, the primary objective of granting the 10 per cent PI is not solely to increase regional revenue. The policy also aims to provide space for local governments to be involved in the management of oil and gas blocks, including gaining access to production information, budgets, and business processes.

Andang noted that there are still several provisions that have the potential to cause multiple interpretations, which could trigger legal issues when applied in the field.

“The need for improvement is not because the regulation opens doors for corruption, but because there are still clauses that are open to multiple interpretations, which can lead to differing interpretations during implementation,” said Andang.

He explained that the FGD was held to gather input from oil and gas producing regions, BUMDs that hold the 10 per cent PI, and BUMDs that are still in the process of obtaining those rights. The results of the discussion are expected to serve as material for the preparation of an academic paper for regulatory refinement.

“Our hope is that recommendations will emerge that can serve as an academic paper as a basis for regulatory refinement, so that the implementation of the 10 per cent PI can run more effectively,” said Andang.

The Director of PT Jakarta Offshore Energy (JOE), Astar Simorangkir, stated that BUMDs that have been managing the 10 per cent PI still face various challenges because the implementing regulations are deemed not to have regulated the mechanism in detail.

“The problem is, the existing rules do not specifically regulate how implementation works in the field. As a result, there are still several grey areas that can lead to legal issues during audits,” said Astar.

According to Astar, several provisions, including those regarding the maximum limit of the 10 per cent PI, still require clarification to avoid differing interpretations. He hopes that the recommendations from the FGD can strengthen governance while providing legal certainty for all stakeholders.

“We want all stakeholders to have the same perspective so that the governance of the 10 per cent PI becomes increasingly accountable, professional, and provides optimal benefits for both the region and the country,” said Astar.