Obligation to Use Domestic Goods and Services in the Upstream Oil & Gas Sector

Minister of Energy and Mineral Resources has issued Regulation No. 15 of 2013 on the Use of Domestic Products in the Upstream Oil and Gas Business Activities (“Regulation”). The Regulation implements Articles 3 (d), 11 (3) (o), 40 (4), and 42 (h) of Law No. 22 of 2001 on Oil and Gas.[1]

In general, the Regulation promotes the use of domestic goods and services in the upstream oil and gas business activities by establishing a minimum level of domestic components (Tingkat Komponen Dalam Negeri – “TKDN”) that must be used by upstream oil and gas businesses.