The information data compensation (Kompensasi Data Informasi "KDI") calculation formula for mining business license areas (Wilayah Izin Usaha Pertambangan "WIUP") and special mining business license areas (Wilayah Izin Usaha Pertambangan Khusus "WIUPK") must now take the following activities into consideration: 1) Investigations and research into the preparation of WIUP/WIUPK; 2) Assignments for investigation and research into the preparation of WIUP and/or WIUPK; and/or 3) Evaluations of WIUP/WIUPK areas that have been reduced and Mining Business Licenses (Izin Usaha Pertambangan "IUP")/Special Mining Business Licenses (Izin Usaha Pertambangan Khusus "IUPK") that have either expired and/or been revoked.

The Draft Bill ("Draft Amendment") on the Second Amendment to Law No. 10 of 1997 on Nuclear Energy, which was subsequently amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as "Law 10/1997"), has now been made available to the public. In essence, the Draft Amendment significantly broadens regulatory scope within this area by introducing over 100 new articles across various chapters, including provisions on nuclear installations, radiation facilities and transportation security. The Draft Amendment mandates strict compliance for all entities involved in nuclear activities, emphasizing adherence to principles of safety, security and sustainable development.

The Regulation introduces a stricter management regime for the reserve capacities of transporters, which are now required to allocate at least 20% of their maximum flow capacities to the public interest or government initiatives. Transporters must submit annual plans detailing their transportation capacities and ensure that they manage their reserve capacities transparently. In addition, administrative penalties, including fines, may ultimately be imposed upon transporters who fail to meet these obligations.

The recently introduced Regulation has extended the registration fee exemption for carbon exchange users until 25 September 2025. Initially set under previous provisions, this exemption has now been extended, allowing businesses more time to register as carbon exchange service users without incurring any registration costs. This extension is aiming to encourage participation in carbon trading activities, making it easier for companies to join the platform by removing the financial barriers that have been put in place during the registration phase.

The components of Gross-Split, Profit-Sharing Contracts ("Profit-Sharing Contracts") will be utilized in order to determine and adjust the profit-sharing elements of Profit-Sharing Contracts, which encompass: 1) Initial profit-sharing ("Base Split"); 2) Variable and progressive components for conventional oil and natural gas; and 3) Fixed variable components for unconventional oil and natural gas. The Base Split will serve as the fundamental reference for determining and adjusting the relevant contractors profit share. The Decree also specifies the following Base Splits for Profit-Sharing Contract components: 1) 53% of crude oil for the state and 47% for the contractor; and 2) 51% of natural gas for the state and 49% for the contractor.

This new Regulation has now redefined the ability to initiate auctions of transmission segments and/or areas that will be used as part of natural gas distribution networks (collectively referred to as "Facilities"). In this regard, the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi "BPH Migas") may initiate auctions for distribution networks with existing pipeline infrastructure, while both BPH Migas and business entities may initiate auctions for networks without any existing infrastructure. Moreover, entities that participate in auctions of Facilities without any existing infrastructure must demonstrate adequate technical and financial capabilities for the construction of new pipelines.

Several adjustments have been made to the substance, expectations and sub-expectations that form the basis of Oil-and-Gas Safety Management System (Sistem Manajemen Keselamatan Minyak dan Gas Bumi "SMKM") application compliance assessments ("SMKM Assessments"), along with changes to the assigned weightings for each substance. Newly introduced requirements for companies include the integration of environmental social governance (ESG) into business processes and the regular conducting of emergency drills, among others. Importantly, any companies lacking valid operational eligibility approvals (Persetujuan Layak Operasi/PLO) for all operated installations will not be able to receive a score higher than 66.4%, which falls into the SMKM Assessment result category of Poor.

The Minister of Energy and Mineral Resources (Minister) has significantly revised the framework on Gross-Split Profit-Sharing Contracts (GS-PSC). The GS-PSC scheme has now been categorized into conventional and non-conventional oil-and-gas activities, which are relevant to determinations of base-split calculation methods. While the previous framework provided a strict percentage for base-split calculations for GS-PSC, the new regulation implements more specific factors for base-split calculations, such as reserve amounts and field conditions. Furthermore, it also allows for periodic adjustments that reflect actual field conditions post-commercial production.

TKDN rates are categorized based on electrical infrastructure type, in relation to which the rates for components range from 15% up to 65.65%. Furthermore, different officials will have the authority to determine calculation procedures for the fulfillment of the minimum TKDN rate requirements. Said officials are determined based on the types of electrical instruments concerned.

Coal and mineral mining businesses are required to establish (for businesses that have not already) and/or manage (for businesses that have already) nursery facilities (i.e. locations in which seeds or other parts of vegetation are processed to become young plants or seeds that result from reproduction and that are ready to be planted). In this regard, said mandatory establishment should be implemented up until 31 December 2025 for mining businesses that hold environmental impact analyses (Analisis Mengenai Dampak Lingkungan Hidup "AMDAL") as their environmental permits.