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Minister Bahlil and Governor Herman Deru Launch New Era of Community-Based Oil Management in South Sumatra

Palembang, The Indonesia Post – A historic moment unfolded for the people of South Sumatra (Sumsel) on Thursday (October 16, 2025), as Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, accompanied by Governor H. Herman Deru, visited community-operated oil wells in Keluang District, Musi Banyuasin Regency.

The visit marked a new chapter in the region’s natural resource governance following the issuance of Ministerial Regulation No. 14 of 2025 concerning the management of community oil wells.

During the occasion, Governor Herman Deru expressed his gratitude to the central government for providing a legal framework that allows local communities to manage their oil resources.

“For years, people could only hope. Now they can legally manage their own natural potential. This is not just about energy—it’s about prosperity,” Governor Deru said.

He added that the legalization of community oil wells enables residents to work without fear or stigma, while helping to curb illegal drilling and improve local incomes.

Meanwhile, Minister Bahlil emphasized that community oil production must be managed through cooperatives, small and medium enterprises (SMEs), or region-owned enterprises (BUMD) to ensure proper organization and compliance with regulations.

The policy is expected to boost regional economic empowerment while supporting Indonesia’s broader goal of inclusive and sustainable energy management. (mhn/ril)

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