A Slice of Oil & Gas Money for Indonesia’s Regions

Key Summary:
- Participating Interest is not something new in O&G
- 2025 regulatory amendment tightens implementation
- Noise may weigh sentiment amid credibility concerns
Indonesia’s upstream oil and gas policy is back in focus after the Minister of Energy and Mineral Resources (ESDM) instructed contractors to accelerate the transfer of 10% Participating Interest (PI) to eligible regional-owned enterprises (BUMD).
Why it matters: This is not new. The obligation has existed since Permen ESDM No. 37/2016 and was later amended by Permen ESDM No. 1/2025. The latest issue is therefore less about a new fiscal burden and more about implementation, governance, and communication.