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Indonesia issues four policies to support MSMEs in energy sector: Govt

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Jakarta (ANTARA) - Indonesia has issued four policies to support micro, small, and medium-sized enterprises (MSMEs) in the energy and mineral resources sector, Energy Downstreaming and Energy Transition Minister Bahlil Lahadalia said on Monday.

The policies cover mining business permits (IUPs) for MSMEs and cooperatives, the legalization of community oil wells, a requirement for IUP holders to cooperate with local contractors, and production quota approvals through revisions to Work Plans and Budgets (RKABs).

“I have introduced four regulations to support MSMEs,” Bahlil said at the national working meeting of the Indonesian Indigenous Entrepreneurs Association (HPPI) in Jakarta.

Bahlil said the mining permit policy was intended to address the limited participation of local communities in mining operations in resource-rich regions, including Kalimantan, Sulawesi, Sumatra, Maluku, and Papua.

Most mining permits in those regions were held by people from Jakarta, while only a small number of local residents held permits to manage mines in their own areas, he said.

The government had therefore introduced legislation giving cooperatives and MSMEs priority in obtaining mining permits without going through a tender process, Bahlil said.

On community oil wells, Bahlil said he had issued Energy and Mineral Resources Ministerial Regulation No. 14 of 2025, which sets out procedures for cooperation in managing parts of oil and gas working areas to boost production.

“We have granted permits for all community oil wells that previously operated without them. Let local people also have the right to manage resources in their hometowns,” Bahlil said.

Bahlil also encouraged local entrepreneurs to participate in mineral and coal mining through an Energy and Mineral Resources Ministerial Decree establishing technical guidelines for approving the use of subsidiaries and/or affiliates in mineral and coal mining services.

The fourth policy concerns production quota approvals through revisions to Work Plans and Budgets (RKABs), with priority given to mining operations with relatively small production quotas.

Bahlil expressed confidence that policies supporting MSMEs would help promote more equitable opportunities across the energy and mineral resources sector.

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