To help boost domestic energy production and promote inclusive economic growth, the Indonesian government has introduced a new legal framework under Ministry of Energy and Mineral Resources Regulation No. 14 of 2025 on Cooperation in the Management of Working Area Segments to Increase Oil and Gas Production (“MEMR Regulation 14/2025”). This regulation allows oil and gas contractors to enter into strategic cooperation with a range of local partners, including Regional-Owned Enterprises (“RoEs”), cooperatives, and Micro, Small, Medium, Enterprises (“MSMEs”), for the management of working area segments. It enables various forms of collaboration, such as operational and technological cooperation on existing wells and production partnerships for untapped or old oil wells. The initiative also sets out compensation structures and oversight mechanisms while encouraging local participation in upstream activities.

In this article, Dentons HPRP lawyers, Winda Tania (Partner), Maichle Delpiero (Associate), Widiarahmi Afiandari (Professional Support Lawyer), Rafhael Christofel Rumentor (Intern) examine how MEMR Regulation 14/2025 aims to unlock the country’s underutilized oil and gas potential by exploring the permitted operating models, implementation stages, and a brief commentary on regulatory practices.

Read the full article here.

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