MNK Law Umbrella Expected to be Issued in July 2026

JAKARTA - Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung revealed that the regulatory framework as the basis for non-conventional oil and gas drilling (MNK) will be issued in July 2026.

Yuliot said that this regulation will be the basis for the implementation of MNK drilling as a support for national oil lifting.

"SKK Migas asked that if it could be completed by the end of June, the regulatory framework could be completed and implemented in early July. So we are racing against time," said Deputy Minister Wamen Yuliot to the media, Friday, June 5.

He added that this step was an effort by the government to increase domestic oil and gas production, especially amid the weakening of the rupiah exchange rate.

The decline in domestic oil production through MNK is a strategic step to reduce Indonesia's dependence on imported energy sources.

"If this domestic production increases, it means that we will also reduce imports and will not be affected by changes or fluctuations in the currency," explained Yuliot.

He believes that the MNK oil drilling will be carried out on oil and gas blocks that have large reserves based on geological surveys. So far, Block Rokan he said is the most potential area to implement the MNK technology.

"So there is an initial study that has been carried out by Pertamina Hulu Rokan for the development of this unconventional," he added.

The MNK technique itself has been applied by the United States in the past, mainly when production from existing fields has experienced a natural decline.

Yuliot said the MNK drilling technique managed to boost oil production in the Uncle Sam's country. So, Indonesia is trying to replicate the MNK project to boost oil production.

"Based on the study from SKK Migas, whoever the technology provider is, the cooperation, there is no problem, but how we complete the evaluation results for this unconventional can be implemented," said Yuliot.