Participating interests can take the following forms: 1) Directly-owned participating interest, as owned by contractors who have obtained approvals from the Minister of Energy and Natural Resources; and 2) Indirectly-owned participating interest, as realized through the ownership of shares or capital-participation by contractors themselves or by the owners of such contractors

Domestic producers and importers of any equipment that utilizes energy ("Equipment") are required to affix SKEM marks or energy-efficient labels to any Equipment which will be traded within Indonesia

This new legal framework now allows both contractors and PT Pertamina (Persero) to engage in transfers of participating interest that amounts to over 51% in line with certain provisions set out under this new regulation

Holders of natural-gas commercial business licenses are now allowed to sell volumes of natural gas which are not absorbed by natural-gas users to other consumers

The Head of the State-Owned Goods Management Center is now responsible for implementing certain authorities and responsibilities in relation to management of state-owned upstream oil-and-gas goods for and on behalf of the Minister of Energy and Mineral Resources

Flaring can be carried out under the following circumstances: 1) Routine flaring; 2) Irregular flaring; 3) Safety flaring; 4) Flaring from low-pressure gas and/or flaring with an average gas impurity content of more than 50% moles; 5) Conditions or events resulting from the failure of any equipment systems or installations; 6) Flaring from additional gas containing gaseous impurities used as fuel for flaring in order to maintain flames; and 7) Flaring from natural-gas production which is subject to commercial constraints

Prior to engaging any imports, domestic petroleum contractors ("Contractors") or their affiliates are now required to: 1) Offer Contractors' shares of petroleum and condensate ("Petroleum") to PT Pertamina and/or Petroleum processing license holders ("Petroleum Businesses"); or 2) Involve PT Pertamina and/or Petroleum Businesses in any auctions of Contractors' shares of Petroleum

The following electrical safety measures must be implemented in relation to all electricity supply installations, electricity usage installations, electrical equipment and users, as well as during all installation-related activities: 1) Planning; 2) Construction and installation; 3) Inspections and testing; 4) Operations; and 5) Maintenance

All risk-based business licensing for business activities that are categorized under the energy and mineral resources sector should be processed through the Online Single Submission (OSS) system commencing 2 July 2021

Holders of IUP Production Operations, IUPK Production Operations and IUPK as a continuation of contract operations/agreements for coal commodities will be able to enjoy a 0% royalty rate