To help boost domestic energy production and promote inclusive economic growth, the Indonesian government has introduced a new legal framework under MEMR Regulation No. 14 of 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 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), examine how MEMR Regulation 14/2025 aims to unlock the country’s underutilized oil and gas potential, while balancing investor interests with regulatory supervision and local empowerment. They explore the operational models permitted under the regulation, the stages of implementation, and the challenges that may arise in practice.

Read the full article here.

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