Peraturan Menteri Energi dan Sumber Daya Mineral 7/2026 (Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 7 Tahun 2026 tentang Standar Kegiatan Usaha pada Penyelenggaraan Perizinan Berusaha Berbasis Risiko Sektor Energi dan Sumber Daya Mineral) is an Indonesian ministerial regulation that sets the business-activity standards for risk-based business licensing in the energy and mineral resources sector. It was signed by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, on 8 June 2026 and took effect on its promulgation on 12 June 2026.^[1][2] It implements Pasal 5 ayat (7) of Peraturan Pemerintah 28/2025 on risk-based business licensing, and is one of the licensing instruments surveyed at mining and energy regulation in Indonesia.^[3]

The body of the regulation is short: 21 articles on the licence categories, basic requirements, supervision, administrative sanctions and transition. Its substance lies in two annexes that fill most of its 324 pages, which set the standard for each core business licence in four subsectors and for each supporting licence in five, the fifth being geology, where the supporting licence is the groundwater-use licence.^[4][2:1] Sanctions are set separately for each subsector.^[5]

The regulation revoked Permen ESDM 5/2021, the previous standards regulation made under PP 5/2021, while keeping applications already in process under the old rules and licences already issued valid until they expire.^[6][7] CRPG's regulatory tracker published a series of seven analyses of the regulation between 30 June and 5 July 2026, one on the framework and one on each subsector.^{[8][9][10][11][12][13][14]}

¶ Background

Risk-based business licensing, administered through the Online Single Submission (OSS) system, was first regulated by PP 5/2021. PP 28/2025 revoked and replaced it, and the ministry's earlier standards regulation, Permen ESDM 5/2021, had been made under the old framework.^[15][7:1] The preamble of Permen ESDM 7/2026 cites Pasal 5 ayat (7) of PP 28/2025 as its only ground; its legal bases include Pasal 17 ayat (3) of the Constitution, the State Ministries Law as amended in 2024, PP 28/2025 and Perpres 169/2024 on the Ministry of Energy and Mineral Resources.^[3:1]

¶ Licence categories and basic requirements

Pasal 1 defines risk-based business licensing (Perizinan Berusaha Berbasis Risiko, PBBR) as licensing based on an analysis of the risk of each business activity. It distinguishes the business licence (Perizinan Berusaha, PB), the legal basis for starting and running a business, from the licence to support a business activity (Perizinan Berusaha Untuk Menunjang Kegiatan Usaha, PB UMKU).^[16] Pasal 2 requires every business actor in the sector to hold a PB, and a PB UMKU where a supporting licence is needed, both processed electronically through OSS, which is integrated with the systems of ministries and agencies.^[17]

Under Pasal 3 a PB is obtained after the basic requirements (persyaratan dasar) have been met, unless the law provides otherwise. The article then relaxes the spatial-use requirement in several cases. For general surveys and upstream oil and gas work areas already set by the government, the approval of spatial-use suitability (Kesesuaian Kegiatan Pemanfaatan Ruang) is granted without assessing a proposal document. For blending refinery products with biofuel, the spatial-use approval and the statement of environmental management capability are treated as already met within the processing, storage or trading licence. Electricity infrastructure in a government-set electricity business area is also exempt from document assessment when it lies in a special economic zone or industrial estate registered in OSS, in an area run by an authority registered in OSS, or, elsewhere, when it consists of distribution networks, distribution substations or electricity sales. For generation, transmission and main substations in the business area of PT Perusahaan Listrik Negara, the minister applies for the spatial-use approval to the minister for land and spatial planning. The spatial-use requirement does not apply at the survey and exploration stage of new and renewable energy or the exploration stage of minerals and coal.^[18]

¶ Standards by subsector

Pasal 4 lists four subsectors for core licences (oil and gas, electricity, minerals and coal, and new and renewable energy and energy conservation) and five for supporting licences, adding geology. Pasal 5 attaches the standards as Lampiran I for core licences and Lampiran II for supporting licences.^[4:1] Each standard identifies the activity by its code in the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia, KBLI), and Pasal 14 provides that a change in the classification is read into the regulation.^[19]

¶ Oil and gas

Lampiran I sets sixteen oil and gas standards. The first is the cooperation contract (Kontrak Kerja Sama) for upstream exploration and exploitation, classified under the KBLI codes for crude petroleum and natural gas mining, whose scope extends to carbon capture, storage and utilisation within an oil and gas work area. Three licences concern carbon: exploration of an injection target zone, carbon storage operation and carbon transport by pipeline. The general survey licence is classified as an engineering and technical consultancy activity. The downstream standards cover transport by pipeline, processing (including the processing of used lubricating oil into fuel), trading, which also takes in the distribution of natural and manufactured gas, and storage.^[20] The remaining standards cover the approval for blending refinery products with biofuel, approvals for distributors of oil and gas products at and away from filling stations, approvals for bases and sub-bases distributing LPG Tertentu in 3-kilogram cylinders, approval of drilling support and well operation activities, and periodic inspection services.^[20:1] The supporting standards in Lampiran II cover the fit-for-operation approval of oil and gas installations, the approval of explosives magazines and the approval of transferring the residual value of a firm commitment to an open area.^[21] Pasal 13 sends the supporting licence for transporting oil, gas, fuel and processed products by modes other than pipeline to the transport-sector standards under PP 28/2025.^[19:1]

¶ Electricity

The core electricity standards cover the electricity supply business licence for the public interest, in separate standards for generation, transmission, distribution, sales and their integrated combinations, and the electricity support-services licence, including services for operating, building, installing and maintaining installations.^[22] Each supply standard carries its own KBLI code, from 35111 for generation to 35114 for sales, with 35115 to 35117 for the integrated combinations, while the support-services standards are divided by activity, among them the operation of supply installations and of utilisation installations, construction and installation, inspection and testing, consultancy, certification and laboratory testing of equipment, research and development, competence certification of electrical technical personnel, and education and training.^[22:1] The supporting standards cover the supply licence for own use, which applies to every KBLI activity that generates electricity for its own needs, the registration of identity numbers for public electric vehicle charging stations and battery swap stations, classified under KBLI 35114 for electricity sales, and the approval of cross-border electricity purchase prices, classified under the codes for integrated supply.^[23]

¶ Minerals and coal

The core mining standards cover the mining business licence (Izin Usaha Pertambangan) for metal minerals and coal and for non-metal minerals and rock, the special mining business licence including one issued as a continuation of a contract, the rock-mining permit, the community mining licence, the transport and sales licence, the mining services licence and the standard certificate for mining consultancy and planning.^[24] The mining services standard states that a business providing mining services holds no other minerals and coal licence. It defines a core mining services business (Usaha Jasa Pertambangan Inti) as one whose activities relate to a stage or part of mining, the mining services licence (Izin Usaha Jasa Pertambangan, IUJP) as the licence to carry on such a business, and the operational officer (Penanggung Jawab Operasional) as the person holding the highest post in the services company's organisation at the mining site, answerable to the technical head of the mining operation (Kepala Teknik Tambang).^[24:1] The one supporting standard is the mining business licence for sales (Izin Usaha Pertambangan untuk Penjualan), which applies to every KBLI activity other than mining. It covers the sale of minerals or coal excavated in the course of activities other than mining, such as construction, by a business that is not a mining business; the standard describes the licence as temporary and granted for a single sale.^[25]

¶ New and renewable energy and energy conservation

The core standards cover the geothermal undertaking licence, the biofuel and biogas business licences, the licence for processing waste into electricity (Pengolah Sampah menjadi Energi Listrik, PSEL), a licence for processing waste into bioenergy or renewable fuel, and the energy conservation services licence.^[26] Both waste-to-energy licences are classified under KBLI 38211, the processing of non-hazardous waste to produce energy; the biogas licence falls under the code for the supply of biogas and the energy conservation services licence under that for other electricity support activities.^[26:1] The supporting standards cover the registration of geothermal support businesses, explosives magazines for geothermal work, the fit-for-operation certificate for direct-use geothermal undertakings and the approval of feasibility studies for geothermal power plant projects.^[21:1]

¶ Geology and groundwater

Geology has no core licence. Its supporting standard is the groundwater-use licence (Izin Pengusahaan Air Tanah), which applies to every KBLI activity that uses groundwater. The standard states that the licence is issued with priority given to surface water and on the basis of the groundwater conditions recorded in the groundwater conservation zone or other hydrogeological data, and defines the zone by shared carrying capacity, shared degree of damage and shared management. It belongs to the rules described at groundwater regulation in Indonesia.^[27]

¶ Supervision and sanctions

Pasal 6 leaves supervision to the applicable law. Pasal 7 to Pasal 11 set administrative sanctions for each subsector. Oil and gas breaches may attract a written warning, temporary suspension, cessation of the business, an administrative fine or revocation. In electricity the ladder runs from warning through temporary freezing and fines to revocation, and a breach that causes casualties or damage to safety, health, the environment or resource use leads directly to freezing or revocation. Minerals and coal licences may be warned, partly or wholly suspended or revoked, with an additional administrative fine for a holder that fails to pay state or regional revenue. For new and renewable energy, sanctions for indirect-use geothermal activities follow the geothermal legislation, while direct-use geothermal, biofuel and biogas, and energy conservation each have their own ladder, and only the biofuel and biogas ladder includes an administrative fine. A breach of the groundwater licence may lead to a warning, suspension of the whole groundwater undertaking or revocation. Pasal 12 requires sanctions to be imposed in accordance with the applicable law.^[28][5:1]

¶ Transition and revocation

Under Pasal 15, applications still in process until OSS has been adjusted to PP 28/2025 continue under PP 5/2021 and Permen ESDM 5/2021, or, for groundwater, under Permen ESDM 14/2024 on groundwater-use licences and approvals. Licences already issued remain valid until they expire (Pasal 16), and holders of processing, storage or trading licences may continue blending refinery products with biofuel but must adjust to the regulation within twelve months of promulgation (Pasal 17).^[6:1] Pasal 18 exempts existing licence holders from the new implementing rules unless these are more favourable to them, and reads old licence names in line with the new nomenclature. Other ministerial regulations on business-activity standards in the sector remain in force so far as they do not conflict with it (Pasal 19), and Pasal 20 revokes Permen ESDM 5/2021.^[29][7:2]

¶ See also

• Permen ESDM 8/2026
• Permen ESDM 4/2026
• Carbon trading and climate regulation in Indonesia
• Permen ESDM 1/2026

¶ External links

• Permen ESDM No. 7 Tahun 2026 (JDIH BPK)

¶ References