Indonesia: Energy and Natural Resources

The Indonesian government has prepared a draft of a new Government Regulation (“GR”) on Electricity Supply Business ("GR Draft") as part of the efforts to accelerate the energy transition and optimisation of the electricity supply business in Indonesia. GR Draft is intended to replace GR No. 14 of 2012 on Electricity Supply Business, as amended by GR No. 23 of 2014 (“GR 14/2012”). GR Draft is still under governmental deliberation.

On 10 October 2025, the President enacted Presidential Regulation (“PR”) No. 109 of 2025 on the Handling of Urban Waste through Waste Processing into Renewable Energy Based on Environmentally Friendly Technology (“PR 109/2025”), which revokes the preceding regulation, namely PR No. 35 of 2018 on the Acceleration of the Construction of Waste-to- Energy Power Plants Based on Environmentally Friendly Technology (“PR 35/2018”), which was considered to have faced challenges in its implementation.

On 29 December 2025, the Minister of Energy and Mineral Resources (“MoEMR”) issued MoEMR Regulation No. 19 of 2025 on Hybrid Power Plant (“MoEMR Reg. 19/2025”).

Indonesia has introduced sweeping reforms requiring all exports of strategic natural resources—including palm oil, coal, and ferroalloys—to be conducted exclusively through a state-owned enterprise. These changes, coupled with revised rules mandating that export proceeds be deposited in state-owned banks, fundamentally reshape the commercial landscape for producers, traders, and financiers operating in Indonesia's natural resources sector.

Indonesia's Ministry of Environment ("MOE") has issued a significant new regulation aimed at strengthening environmental safeguards in the mining sector.

On 18 February 2025, the Indonesian Parliament approved a new bill on the fourth amendment to Law No. 4 of 2009 on Mineral and Coal Mining ("Fourth Amendment Bill") as lastly amended by Law No. 6 of 2023 on Stipulation of Government Regulation in Lieu of Law No. 6 of 2023 on Job Creation into Law ("Law 4/2009").

Indonesia is implementing a centralized export governance framework through Government Regulation No. 24 of 2026, requiring strategic natural resource commodities including coal, palm oil, and ferro alloy to be exported through a designated state-owned enterprise. This regulatory shift, effective June 1, 2026, may fundamentally alter existing commercial arrangements, shipping logistics, and contractual relationships between Indonesian exporters and offshore buyers.

The Indonesian government has prepared a draft of a new Government Regulation (“GR”) on Electricity Supply Business ("GR Draft") as part of the efforts to accelerate the energy transition and optimisation of the electricity supply business in Indonesia. GR Draft is intended to replace GR No. 14 of 2012 on Electricity Supply Business, as amended by GR No. 23 of 2014 (“GR 14/2012”). GR Draft is still under governmental deliberation.

Indonesia has introduced sweeping reforms requiring all exports of strategic natural resources—including palm oil, coal, and ferroalloys—to be conducted exclusively through a state-owned enterprise. These changes, coupled with revised rules mandating that export proceeds be deposited in state-owned banks, fundamentally reshape the commercial landscape for producers, traders, and financiers operating in Indonesia's natural resources sector.

The Indonesian government has prepared a draft of a new Government Regulation (“GR”) on Electricity Supply Business ("GR Draft") as part of the efforts to accelerate the energy transition and optimisation of the electricity supply business in Indonesia. GR Draft is intended to replace GR No. 14 of 2012 on Electricity Supply Business, as amended by GR No. 23 of 2014 (“GR 14/2012”). GR Draft is still under governmental deliberation.

On 10 October 2025, the President enacted Presidential Regulation (“PR”) No. 109 of 2025 on the Handling of Urban Waste through Waste Processing into Renewable Energy Based on Environmentally Friendly Technology (“PR 109/2025”), which revokes the preceding regulation, namely PR No. 35 of 2018 on the Acceleration of the Construction of Waste-to- Energy Power Plants Based on Environmentally Friendly Technology (“PR 35/2018”), which was considered to have faced challenges in its implementation.

On 29 December 2025, the Minister of Energy and Mineral Resources (“MoEMR”) issued MoEMR Regulation No. 19 of 2025 on Hybrid Power Plant (“MoEMR Reg. 19/2025”).