- In 2022, the Minister of Energy and Mineral Resources (“Minister”) introduced Decree of the Minister of Energy and Mineral Resources No. 61.K/MG.01/MEM.M/2022 on the Indonesian Crude Oil Price Formula, as amended several times, most recently by Decree of the Minister No. 168. K/MG.01/MEM.S/2024 (collectively referred to as “Decree 61/2022”). As its title suggests, Decree 61/2022 set out the applicable crude oil price formula, which involves calculations that are completed through the use of benchmarking methods that take the international price of crude oil into account.
- However, the Minister has now decided to adjust the crude oil price formula outlined under Decree 61/2022 through the issuance of Decree No. 294.K/MG.01/MEM.M/2024 on the Seventh Amendment to Decree 61/2022 (“Seventh Amendment”), which has been in force since 14 November 2024.
- While maintaining the core provisions that were originally outlined under Decree 61/2022, the new Seventh Amendment sets out an updated list of applicable crude oil price formulas. In total, the new list outlines a total of 103 formulas for various types of Indonesian crude oil. In this regard, it is important to note that some of these crude oil types refer to mixtures of other crude oils.
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