Bahlil Says Medco Is Ready To Absorb Oil From People's Wells

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that Cooperation Contractors (KKKS) such as PT Medco Energi Internasional Tbk. (MEDC) can absorb oil produced from people's wells.

"KKKS includes yes Pertamina there, some of them are like Medco," Bahlil told the media crew, quoted on Tuesday, October 21.

Bahlil also said that he had just returned from a visit to Mekar Sari Village, Musi Banyuasin Regency, South Sumatra, which was actively producing oil from community wells.

He explained that there are at least 22.000 people's wells in Musi Banyuasin that can produce oil. Meanwhile, average income can produce 2 to 3 barrels per day.

"And I was also quite surprised because behind the people's houses, it turned out that their wells already exist. And their production is approximately 2-3 barrels on average. And this is a huge potential for people's income," Bahlil explained.

He hopes that the government's regulations regarding people's wells can help improve the local economy and create jobs.

The chairman of the Golkar Party also said that the issuance of Regulation of the Minister of Energy and Human Resources (ESDM) Number 14 of 2025 concerning people's wells provides security guarantees for the community to carry out management activities.

According to him, after years of living in uncertainty, people's oil mining activities are now getting a clear legal umbrella. The government provides space for guidance and arrangement for the community to work safely and be monitored without having to worry about legal issues.

"We legalize their wells that have been owned by them so that they no longer have fear from certain parties, certain elements," said Bahlil.