Coal Bed Methane - Regulation for Potential Entrepreneurs

A shift in Government energy policy towards greater levels of diversification in the sector means that there are increasing numbers of opportunities for will investors and entrepreneurs, and one such opportunity is in coal bed methane exploitation. To ensure certainty within the regulatory framework relating to coal bed methane the Minister of Energy and Mineral Resources (MoEMR) has issued Regulation No. 033 of 2006. This Regulation came into force on its confirmation, 22 May 2006.

Indonesia's natural resources are controlled by the State however Law No. 22 of 2001 on Oil and Gas (Oil and Gas Law) allows the Government to enter into Work Contracts for the purposes of exploration and exploitation of natural resources. As coal bed methane is a hydrocarbon it falls within the gambit of the Oil and Gas Law.