Indonesian Political, Business & Finance News

Government to Establish Task Force for Regulating Illegal Oil Wells

| Source: DETIK Translated from Indonesian | Energy
Government to Establish Task Force for Regulating Illegal Oil Wells
Image: DETIK

The government, together with law enforcement agencies, is finalising the establishment of a Task Force (Satgas) to regulate illegal oil drilling practices. It is reported that drilling oil wells without official permits continues to be widespread.

Director of Specific Criminal Acts at Bareskrim Polri, Brigadier General Mohammad Irhamni, stated that the formation of the task force is being discussed through a forum group discussion (FGD) involving various stakeholders.

“Today, from morning until afternoon, we held an FGD to discuss preparations for establishing the Illegal Drilling Task Force,” said Irhamni to reporters at Bareskrim Polri, South Jakarta, on Wednesday (8/4/2026).

He explained that this step is driven by the need to strengthen national oil reserves amid high global oil prices. According to him, domestic reserve potential is available but not yet optimal due to ongoing illegal activities.

“The reserves (domestically) exist, but there are still many illegal activities occurring,” stated Irhamni.

Therefore, Polri, along with the Special Task Force for Upstream Oil and Gas Activities (SKK Migas), the Ministry of Energy and Mineral Resources (ESDM), and Pertamina, are involved.

Special Staff to the Minister of ESDM, Commissioner General (Ret.) Rudy Sufahriadi, mentioned that through this task force, the government will pursue an approach of regulation alongside limited legalisation of community-owned oil wells.

“In accordance with Ministerial Regulation Number 14 of 2025, existing community mines can be purchased by Pertamina, and Medco (MedcoEnergi) will also participate, making them non-illegal provided there is a cooperation agreement and the wells are specified,” explained Rudy.

He elaborated that this policy applies for four years and does not open permits for new wells. The government will only organise existing wells, while activities outside these provisions will be addressed.

“The existing wells now will be regulated by being purchased by Pertamina for Pertamina, and there will be no new wells. Outside of those wells, regulation will be enforced,” he clarified.

Meanwhile, Head of SKK Migas, Djoko Siswanto, added that enforcement will not only target illegal drilling but also other illegal activities in the oil business chain.

“Besides illegal drilling, there will also be regulation of illegal refineries, illegal distribution, and illegal trading and commerce,” said Djoko.

“So, oil must be sold legally, with permits, to Pertamina and other third parties like Medco. Anything outside of that will be regulated,” he continued.

The government assures that data on permitted wells is held by the Directorate General of Oil and Gas. Thus, there is no opportunity for opening new wells outside the official list.

The operational timeline for the task force will be announced soon. The task force will involve various ministries and agencies, including the TNI and the Prosecutor’s Office.

“This task force will work according to the leadership’s instructions, between ESDM, SKK Migas, coordinating with the leadership of Mr. Kapolri, when we are ordered to carry out the activities,” added Irhamni.

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