Indonesia introduces four policies to support small firms in energy
Cooperatives and MSMEs receive priority access to mining permits without tenders, while smaller mining operations get priority for production quota approvals.
Indonesia has adopted four measures covering permits, community oil wells, local contractors and mining production quotas to support micro, small and medium-sized enterprises (MSMEs), according to Energy Downstreaming and Energy Transition Minister Bahlil Lahadalia. He outlined the policies in Jakarta at a national working meeting organised by the Indonesian Indigenous Entrepreneurs Association (HPPI).
Bahlil said legislation allows cooperatives and MSMEs to obtain mining business permits (IUPs) on a priority basis, without participating in tenders. Another measure requires IUP holders to work with local contractors. He also cited a ministerial decree providing technical guidance on approving subsidiaries or affiliates for mineral and coal mining services.
For production quotas, the government is using revisions to Work Plans and Budgets (RKABs) to grant approvals. Mining operations with relatively small quotas receive priority, Bahlil said.
Bahlil said all previously unlicensed community oil wells had received permits. He cited Energy and Mineral Resources Ministerial Regulation No. 14 of 2025, which provides cooperation procedures for managing portions of oil and gas working areas with the aim of increasing output.
The minister said the mining permit changes sought to expand local involvement in Kalimantan, Sulawesi, Sumatra, Maluku and Papua. He said people from Jakarta held most permits in those resource-rich regions, while relatively few local residents had permission to operate mines in their home areas.
