Risk-Based Business Licensing Standards for the Energy and Mineral Sector: Permen ESDM 7/2026

The Minister of Energy and Mineral Resources has issued Peraturan Menteri Energi dan Sumber Daya Mineral Republik Indonesia Nomor 7 Tahun 2026 tentang Standar Kegiatan Usaha pada Penyelenggaraan Perizinan Berusaha Berbasis Risiko Sektor Energi dan Sumber Daya Mineral ("Business-Activity Standards for the Administration of Risk-Based Business Licensing in the Energy and Mineral Resources Sector"). The regulation was enacted on 8 June 2026, signed by Minister Bahlil Lahadalia, and took effect on its promulgation date of 12 June 2026.

This article describes the regulation's framework. The detailed standards are organised by subsector, each covered in a dedicated companion article linked below.

What the regulation does

Permen ESDM 7/2026 implements Article 5(7) of Peraturan Pemerintah Nomor 28 Tahun 2025 on the Administration of Risk-Based Business Licensing. It sets out the standar kegiatan usaha (business-activity standards) that a business actor must meet to obtain and hold licences in the energy and mineral sector, processed through the Online Single Submission (OSS) system.

The regulation distinguishes two licence categories defined in Article 1:

• Perizinan Berusaha (PB) — the core business licence required to start and run an activity.
• Perizinan Berusaha Untuk Menunjang Kegiatan Usaha (PB UMKU) — supporting licences needed to underpin a business activity.

Article 2 requires every business actor in the sector to hold the relevant PB, and PB UMKU where a supporting licence is needed; both are processed electronically through OSS, which is integrated with ministry and agency systems.

The five subsectors

Article 4 sets the scope. Core business licences (PB) cover four subsectors, while supporting licences (PB UMKU) cover five:

Article 5 attaches the substantive standards in two annexes: Lampiran I (PB) and Lampiran II (PB UMKU), both declared an inseparable part of the regulation.

Subsector detail is set out in the companion articles:

• Oil and gas business licensing standards
• Electricity business licensing standards
• Minerals and coal business licensing standards
• Renewable energy and energy conservation licensing standards
• Groundwater and geology business licensing standards

Basic requirements and spatial-compliance carve-outs

Article 3 provides that PB is obtained after a business actor first satisfies the basic requirements (persyaratan dasar), unless otherwise provided. It sets several specific rules, including:

• For general survey and pre-determined upstream oil-and-gas work areas, the Suitability of Spatial Use approval is granted without assessing a spatial-use proposal document.
• For electricity infrastructure within government-set electricity business areas, the spatial-use suitability approval is granted without document assessment under defined conditions (locations in a Special Economic Zone or industrial estate registered in OSS; areas managed by an authority; or, outside those, for distribution networks, distribution substations, and electricity sales).
• For PLN generation, transmission, and main substations, the Minister submits the spatial-use request to the minister for agrarian and spatial affairs.
• The basic-requirement obligation for spatial-use suitability is waived for the survey and exploration stage in the EBTKE subsector and the exploration stage in the minerals and coal subsector.

Supervision and administrative sanctions

Supervision of PB and PB UMKU is carried out under prevailing law (Article 6). Administrative sanctions are set per subsector in Articles 7–11 and range from written warnings, temporary suspension, and administrative fines to revocation of the licence. The specific ladder differs by subsector — for example, sanctions in electricity escalate where a breach causes casualties or damage to safety, health, the environment, or resource use (Article 8), and groundwater-related breaches in geology carry their own ladder (Article 11). Article 12 confirms sanctions are imposed under prevailing law.

Transition and what is revoked

The transitional provisions (Articles 15–18) preserve continuity:

• Applications in process until the OSS system is adjusted to PP 28/2025 continue under PP 5/2021 and Permen ESDM 5/2021, or under Permen ESDM 14/2024 on groundwater use (Article 15).
• Licences already issued and still valid remain valid until they expire (Article 16).
• For blending of refinery products with biofuel, holders of existing oil-and-gas processing, storage, or trading licences may continue blending but must adjust to this regulation within 12 months of promulgation (Article 17).

Article 20 revokes Permen ESDM No. 5 Tahun 2021 on business-activity and product standards for risk-based licensing in the ESDM sector. Other ministerial regulations on such standards remain in force so far as they do not conflict with this regulation (Article 19). Where the Indonesian Standard Industrial Classification (KBLI) changes, the KBLI references in this regulation are read in line with the change (Article 14).

Citation

Peraturan Menteri Energi dan Sumber Daya Mineral Republik Indonesia Nomor 7 Tahun 2026 tentang Standar Kegiatan Usaha pada Penyelenggaraan Perizinan Berusaha Berbasis Risiko Sektor Energi dan Sumber Daya Mineral. Ditetapkan di Jakarta, 8 Juni 2026; berlaku sejak diundangkan, 12 Juni 2026; Berita Negara Republik Indonesia Tahun 2026. Source: JDIH Kementerian ESDM (jdih.esdm.go.id) and peraturan.bpk.go.id.

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