Bahlil Urges Oil Firms to Tap Oil from Community-Run Old Wells

Tangerang, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is asking all Concession Contract Operators (KKKS) to absorb crude oil production from old wells operated by communities. It is understood that the government has already legalised the production of oil from old wells managed by communities. Minister of ESDM Bahlil Lahadalia also asked the oil and gas companies designated by the government to move quickly to collect the oil from the recorded old wells in order to boost the national crude oil lifting. ‘Now that we have granted the legalization, communities can now take the earth’s bounty, the oil, properly. Please, those who have been designated, take the oil quickly,’ he said at The 50th IPA Convention & Exhibition (Convex) at ICE BSD, Tangerang Regency, on Wednesday, 20 May 2026. The assignment targets the oil wells that have been managed by communities for decades across various regions. Previously, the activity was deemed illegal due to the lack of official operational permits from the government. ‘I urge the K3S teams that have been designated to receive the crude from the cooperative groups or MSMEs that have oil wells behind their homes for decades and which have been pursued by some officials only because there were no permits,’ he added. In addition to private KKKS, Bahlil also asked PT Pertamina (Persero) to accelerate the process of absorbing oil from the MSME sector. Bahlil reminded that being a state-owned company should not make Pertamina slow in implementing policies aimed at strengthening national energy resilience. ‘Is there Pertamina? I hear Pertamina’s reports are still slow; please accelerate Pertamina, don’t think that promoting MSMEs allows you to slow down. Well, I’m telling you politely upfront,’ he asserted. The government is committed to providing equal treatment for all upstream oil and gas industry players. Optimising community wells is seen as a regional contribution to supporting the government’s drive for energy self-sufficiency. ‘For the country, siding with BUMN is important. But it is far more important to consider all national interests. Other K3S groups also make an equal contribution to the nation’s development in our country,’ he concluded.