Outraged investors in Indonesia’s upstream sector are calling for new energy regulations to be retracted, but fears of further state interference will persist even if their lobbying is successful.
The new rule, announced by Indonesia’s Ministry of Energy and Mineral Resources (ESDM) on 21 July, tightens government control over the sector.
For companies with a production-sharing contract (PSC), regulation no. 42/2017 restricts the transfer of shares or participating interests in projects, as well as changes of directors, chief executives and managing directors.
The rule applies to the various...