Brigitta I. Rahayoe & Partners » Bayu Wicak

THE USE OF SUBSIDIARIES AND/OR AFFILIATES AS MINING SERVICE CONTRACTORS

Bayu Wicak — Fri, 30 Oct 2026 08:16:47 +0000

THE USE OF SUBSIDIARIES AND/OR AFFILIATES AS MINING

SERVICE CONTRACTORS

The engagement of mining service companies is a common practice in mineral and coal mining operations in Indonesia. Indonesia’s mining regulatory framework requires mining licence holders to prioritize the engagement of mining service contractors that are not affiliated with the relevant licence holder. However, to accommodate certain business needs, particularly those relating to strategic projects and the development of Indonesia’s mining industry, the regulatory framework permits the use of subsidiaries and/or affiliated companies as mining service contractors under limited circumstances.

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (“MEMR“) has issued new guidelines governing the application, approval, and evaluation process for the use of subsidiaries and/or affiliates in the mineral and coal mining services sector through MEMR Decree No. 365.K/MB.01/MEM.B/2026 (“MEMR Decree 365/2026“) dated 18 September 2026. MEMR Decree 365/2026 revokes the previous technical guidelines issued in 2010.

The key provisions of MEMR Decree 365/2026 are outlined below:

1. General Rule on the Use of Mining Service Contractors

The use of subsidiaries and/or affiliated entities as mining service contractors is treated as an exception under Indonesia’s mining regulatory framework and may only be undertaken in circumstances prescribed by the MEMR.

Consistent with this principle, subsidiaries and/or affiliated entities cannot automatically be appointed as mining service providers only because they belong to the same corporate group.

2. Definition of Affiliate

Under MEMR Decree 365/2026, a mining service company is considered affiliated with holder of the Mining Business Licences (Izin Usaha Pertambangan – “IUP“) and Special Mining Business Licences (Izin Usaha Pertambangan Khusus – “IUPK“) if:

there is a direct shareholding relationship between the IUP/IUPK holder and the mining service company; or
the IUP/IUPK holder and the mining service company share one or more of the same beneficial owners.

3. Limited Circumstances for the Use of Subsidiaries and/or Affiliates

Notwithstanding the foregoing, holders of IUP and IUPK may engage subsidiaries and/or affiliates as mining service contractors in certain circumstances.

The approval to engage subsidiaries and/or affiliates as mining service contractors may be granted in relation to the following activities:

the national strategic projects (proyek strategis nasional);
the development of mineral processing and/or refining facilities;
the coal development or utilization activities; and/or
the activities supporting the fulfilment of domestic mineral or coal requirements.

4. Prior Government Approval Requirement

The engagement of a subsidiary and/or affiliate as a mining service contractor requires prior approval from the Minister of Energy and Mineral Resources. The Minister must issue a decision within 14 (fourteen) working days after receiving a complete application.

Conclusion

MEMR Decree 365/2026 establishes a framework for the use of subsidiaries and/or affiliates as mining service contractors, including the eligibility criteria and approval requirements that must be met.

Accordingly, mining companies that engage affiliated entities in mining services activities may wish to assess whether their current arrangements are consistent with the requirements of MEMR Decree 365/2026.

This Client Alert is provided for general informational purposes only and does not constitute legal advice. Please contact us should you require further information or assistance regarding the handling of related matters.

LINK PDF: Client-Alert-re-The-Use-of-Subsidiaries-and-or-Affiliates-as-MSC-2026-10-30_3.pdf

CORPORATE LIABILITY IN ENVIRONMENTAL CRIMINAL OFFENCES

Bayu Wicak — Sat, 24 Oct 2026 00:01:25 +0000

CORPORATE LIABILITY IN ENVIRONMENTAL CRIMINAL OFFENCES

On 29 September 2026, the Government of the Republic of Indonesia issued the Regulation of the Minister of Environment/Environmental Control Agency No. 12 of 2026 regarding the Handling of Environmental Criminal Offences (“RM 12/2026“). This regulation revokes the Regulation of the Minister of Environment No. 11 of 2012 regarding the Guidelines for the Investigation of Criminal Offences in the Field of Environmental Protection and Management. At the same time, RM 12/2026 establishes a more comprehensive framework governing the handling of environmental criminal offences by Environmental Civil Servant Investigators (Penyidik Pegawai Negeri Sipil Lingkungan Hidup – “PPNS LH“), from the inquiry stage through to formal investigation.

The following are several key provisions introduced under RM 12/2026:

1. Greater Focus on Corporate Environmental Offences

RM 12/2026 introduces a specific framework for the inquiry and investigation of corporate offences through the inclusion of a dedicated chapter on corporate investigations. While RM 12/2026 does not create new offences or sanctions, it provides greater clarity on the manner in which investigations involving corporations may be conducted.

2. Corporate Liability and Responsible Individuals

RM 12/2026 provides that criminal liability for environmental offences committed by a corporation may be imposed not only on the corporation itself, but also on those deemed responsible for the corporation. These include:

functional management personnel;
instructing parties;
controlling persons; and
beneficial owners.

Compared to the previous regulation, which primarily focused on general investigative procedures, RM 12/2026 provides a clearer basis for identifying and examining individuals behind a corporation’s control structure. The express inclusion of these categories also suggests a broader enforcement focus, allowing consideration not only of individuals involved in a company’s day-to-day operations, but also those who exercise influence over, or control, the corporation’s decision-making processes.

3. Environmental Criminal Offences and Evidence Gathering

RM 12/2026 provides that the handling of environmental criminal offences may be initiated based on findings from environmental compliance inspections or in the event of a caught-in-the-act violation. Where indications of a criminal offence are identified, PPNS LH may conduct inquiries through crime scene examinations, the collection of evidence, and the taking of statements from witnesses and experts. Based on the outcome of such inquiries, PPNS LH may determine whether the matter should proceed to a formal investigation, be discontinued, or be referred to the relevant competent authority.

RM 12/2026 also recognizes various forms of evidence that may be used in environmental criminal proceedings, including environmental and licensing documents, electronic records generated from monitoring activities and/or remote sensing, and objects or items associated with the alleged offence.

Conclusion

Although RM 12/2026 primarily governs the handling of environmental criminal offences, its significance extends procedural matters. In particular, the regulation introduces a dedicated framework for investigations involving corporations and expressly identifies categories of individuals who may be held responsible for corporate misconduct, including controlling persons and beneficial owners. As such, RM 12/2026 reflects a more comprehensive approach to environmental enforcement in the corporate context.

LINK PDF: Client-Alert-regarding-Corporate-Liability-in-Environmental-Criminal-Offences-2026-10-235.pdf

NEW REGULATION ON DRUG PROMOTION AND ADVERTISING

Bayu Wicak — Fri, 16 Oct 2026 09:08:29 +0000

NEW REGULATION ON DRUG PROMOTION AND

ADVERTISING

Indonesia’s National Agency of Drug and Food Control (Badan Pengawas Obat dan Makanan – “BPOM“) has introduced a new regulatory framework for drug promotion and advertising through BPOM Regulation No. 7 of 2026 regarding the Drug Promotion and Advertising (“BPOM Regulation 7/2026“), replacing BPOM Regulation No. 2 of 2021 regarding the Guidelines for Drug Advertising Supervision.

Unlike the previous framework, which primarily focused on drug advertising, BPOM Regulation 7/2026 governs not only advertising activities but also drug promotion more broadly. The regulation establishes a comprehensive framework governing drug promotion and advertising, including the parties authorised to conduct promotional activities, permissible communication channels, content requirements for promotional materials, and restrictions applicable to pharmaceutical marketing practices.

The following are several key provisions under BPOM Regulation 7/2026:

1. Distinction Between Prescription and Non-Prescription Drugs

BPOM Regulation 7/2026 provides that prescription drugs, including prescription-only medicines, narcotics, and psychotropic substances, can only be promoted or advertised through scientific media intended for medical practitioners and/or healthcare professionals. In contrast, non-prescription drugs can be promoted to the public.

BPOM Regulation 7/2026 further requires that the promotion of prescription drugs be conducted only through forums or media with restricted access for medical practitioners and/or healthcare professionals and that the information presented be scientifically substantiated. Permitted channels include scientific brochures, professional presentations, and other digital platforms used for promotional activities.

2. Digital and Social Media Promotion

In recognition of the increasing use of digital channels in pharmaceutical marketing, BPOM Regulation 7/2026 expressly permits the use of digital technology and social media for drug promotion and advertising activities. Social media platforms may enable two-way communication between advertisers and users, provided that the information communicated remains aligned with the approved advertising content and adheres to the principles of being objective, complete, and non-misleading.

Notwithstanding the above, BPOM Regulation 7/2026 imposes specific restrictions to mitigate the risks associated with online promotion. Among other things, promotional activities conducted through two-way communication features must not be used to directly offer or facilitate drug sales transactions. In addition, pharmaceutical electronic system operators are prohibited from displaying prescription drug information to the public for promotional, advertising, or direct sales purposes.

3. Responsibility for Promotional Activities

BPOM Regulation 7/2026 provides greater clarity on the parties involved in drug promotion activities, including medical representatives, product specialists, sales personnel, and other individuals formally appointed by business actors to undertake such activities. Regardless of who conducts the promotional activities, ultimate responsibility remains with the relevant business actor. Accordingly, pharmaceutical manufacturers, pharmaceutical wholesalers, pharmaceutical service facilities, and pharmaceutical electronic system operators are expected to ensure appropriate qualifications, training, and oversight of the personnel engaged in promotional activities.

4. Prohibited Promotional Practices

BPOM Regulation 7/2026 introduces several restrictions aimed at preventing promotional practices that may create conflicts of interest or encourage the inappropriate use of drugs. These include:

provision of bonuses or gifts, whether in cash or in kind, linked to drug sales;
prescription arrangements with healthcare facilities or healthcare professionals aimed at increasing the sales of products;
prize-based promotions, quizzes, and similar programmes; and
distribution of drug samples to the public for promotional purposes.

5. Advertising Approval for Non-Prescription Drugs

BPOM Regulation 7/2026 continues to require advertisements of non-prescription drugs intended for the public to obtain prior BPOM approval before publication. The regulation also provides a more detailed framework governing the electronic submission, review, and approval of advertising materials, including different review timelines for notification, minor, and major categories of advertisements.

6. Administrative Sanctions

BPOM may impose administrative sanctions for violations of certain provisions under BPOM Regulation 7/2026, depending on the nature and severity of the non-compliance.

Non-compliance with certain provisions of BPOM Regulation 7/2026 may give rise to administrative sanctions imposed by BPOM:

warnings;
stern warnings;
temporary suspension of activities;
revocation of marketing authorisations; and/or
revocation of Good Distribution Practice (CDOB) certificates.

Conclusion

Through BPOM Regulation 7/2026, BPOM has expanded its oversight from traditional drug advertising to the broader regulation of pharmaceutical promotional activities, including those conducted through digital and social media platforms. The regulation introduces clearer rules on the promotion of prescription and non-prescription drugs, establishes greater accountability for promotional activities, and provides a more detailed framework for advertising approvals and compliance obligations.

Given the broader scope and enhanced compliance requirements under BPOM Regulation 7/2026, business actors should assess whether their existing promotional practices, advertising materials, and digital engagement strategies remain aligned with the new regulatory framework.

This Client Alert is provided for general information purposes only and does not constitute legal advice. Please contact us should you require further information or assistance regarding the implementation of the drug promotion and advertising or related matters.

Link PDF: Client-Alert-regarding-New-Regulation-on-Drug-Promotion-and-Advertising-2026-10-167.pdf

NEW HALAL IMPORT VERIFICATION REQUIREMENTS

Bayu Wicak — Fri, 09 Oct 2026 10:05:05 +0000

NEW HALAL IMPORT VERIFICATION REQUIREMENTS

The Government of the Republic of Indonesia (the “Government”) has introduced a new mechanism for the supervision of imported halal products through Regulation of Halal Product Assurance Organizing Agency (Badan Penyelenggara Jaminan Produk Halal – “BPJPH”) No. 4 of 2026 regarding the Assurance of Compliance of Foreign Halal Products Entering Indonesian Territory (“BPJPH Regulation 4/2026“) and Decree of the Head of BPJPH No. 328 of 2026 regarding the Standard Operating Procedures for the Assurance of Compliance of Foreign Halal Products Entering Indonesian Territory (“BPJPH Decree 328/2026“).

Through these regulations, the Government has established the Assurance of Compliance of Halal Products (Pemastian Kesesuaian Produk Halal – “PKPH“) mechanism, which requires imported products subject to Indonesia’s halal requirements to undergo a verification process before entering the country. This policy is intended to ensure that the halal certificates, halal labels, and product information associated with imported products are consistent with the actual products being imported.

The PKPH mechanism is not limited to food and beverage products. Under Indonesia’s halal product assurance framework, the scope of products subject to halal requirements also includes medicines, cosmetics, chemical products, biological products, and utilized consumer goods (barang gunaan). Halal requirements for such consumer goods apply only to goods that are derived from and/or contain animal-based materials.

Nevertheless, BPJPH Regulation 4/2026 exempts certain categories of goods from the PKPH mechanism, including personal belongings of passengers and transportation crew members, personal shipments, shipments belonging to Indonesian migrant workers, relocation goods, product samples for testing purposes, and goods in transhipment.

The key provisions regarding the implementation of the PKPH mechanism are set out below:

1. Mandatory Assurance of Compliance of Halal Products

Pursuant to BPJPH Regulation 4/2026, imported products that are required to be halal certified, as well as non-halal products required to display a non-halal indication, must first undergo the PKPH process prior to the submission of import customs documentation.

As part of the PKPH process, various aspects are subject to examination and verification, including halal certificates or halal registration numbers, halal labels or non-halal indications, the conformity of product types and harmonized system codes, production and shipment information, along with other supporting documents required depending on the type of product.

One of the key changes introduced under BPJPH Regulation 4/2026 is the implementation of the PKPH mechanism in the country of origin and/or the country of loading before the products are dispatched to Indonesia. Through this mechanism, compliance for imported halal products is no longer focused solely on holding a valid halal certificate or halal registration. Importers must also ensure that the relevant products and supporting documents undergo verification and that a Halal Product Compliance Assurance Report (Laporan Pemastian Produk Halal) is obtained before the products are imported into Indonesia.

2. Halal Product Compliance Assurance Report (Laporan Pemastian Produk Halal – “LPPH”)

Pursuant to BPJPH Decree 328/2026, following completion of the PKPH process, the appointed inspection body will issue an LPPH as evidence that the relevant products and supporting documents have been verified under the applicable PKPH requirements.

The LPPH is required to support the importation of goods into Indonesia and applies to a single shipment only.

3. Inspection Bodies Responsible for Conducting PKPH

The PKPH process is carried out by inspection bodies appointed by BPJPH. Such inspection bodies may be government-owned or private entities that satisfy certain requirements, including accreditation standards, personnel competency requirements, and operational capability to conduct inspections overseas.

Importers are required to select a BPJPH-appointed inspection body when submitting a PKPH application through BPJPH’s electronic system.

4. Effective Date of the LPPH Requirement

Effective 17 October 2026, products loaded in the country of origin and/or the country of loading will be required to undergo the PKPH process and obtain an LPPH prior to importation into Indonesia. The applicability of this requirement is determined based on the relevant on-board date. Accordingly, products shipped to Indonesia on or after that date must have completed the PKPH process and obtained an LPPH before being imported into Indonesia.

5. Administrative Sanctions

Failure to comply with the PKPH requirements may result in administrative sanctions being imposed on importers, including written warnings, revocation of halal certificates or halal registration numbers, withdrawal of products from the market, and destruction of products.

Conclusion

BPJPH Regulation 4/2026 and BPJPH Decree 328/2026 expand the regulatory framework governing imported halal products by introducing the PKPH mechanism and the requirement to obtain an LPPH before certain products may be imported into Indonesia. With these requirements becoming effective from 17 October 2026, importers should ensure that the required verification process has been completed prior to shipping products to Indonesia. These regulations mark a shift from a regime primarily focused on halal certification to one that also requires verification of product compliance before products are imported into Indonesia.

Link PDF: Client-Alert-New-Halal-Import-Verification-Requirements-2026-10-095.pdf

NEW REGULATION ON ABANDONED AREAS AND ABANDONED LAND

Bayu Wicak — Fri, 02 Oct 2026 06:17:39 +0000

NEW REGULATION ON ABANDONED AREAS AND ABANDONED LAND

The Government of the Republic of Indonesia (“Government”) has issued the Government Regulation No. 48 of 2025 regarding the Regulation of Abandoned Areas and Abandoned Land (“GR 48/2025“), which revokes and replaces the Government Regulation No. 20 of 2021 regarding the Regulation of Abandoned Areas and Abandoned Land.

Although the regulation of abandoned land is not a new concept under Indonesia’s land law framework, GR 48/2025 expands the scope of the existing regime by introducing the concept of abandoned areas (kawasan telantar) as an object of regulation. This development reflects the Government’s efforts to promote the productive use of land and land-based areas and to discourage the holding of land that is not followed by actual development, utilization, or business activities.

The following are several key provisions under GR 48/2025:

1. Introduction of Abandoned Areas as an Object of Regulation

One of the most significant aspects of GR 48/2025 is the introduction of provisions concerning abandoned areas. GR 48/2025 defines an abandoned area as a non-forest areas that have not been encumbered with land rights and for which a license, concession, and/or business license has been issued, whether such license, concession, and/or business license remains valid or has expired, and which are intentionally not cultivated, not used, and/or not utilized.

GR 48/2025 provides that abandoned areas subject to regulatory action include:

mining areas;
plantation areas;
industrial areas;
tourism areas;
large-scale or integrated housing and residential areas; and
other areas whose development, use, and/or utilization is based on a license, concession, or business license relating to the use of land and space.

With the enactment of GR 48/2025, the scope of regulation is no longer limited to land that has been granted land rights. Areas controlled under a license, concession, or business license may also become subject to regulatory action if they are not developed, used, or utilized in accordance with their intended purpose.

2. Reaffirmation of the Regulation of Abandoned Land

In addition to regulating abandoned areas, GR 48/2025 maintains the existing framework governing abandoned land. Abandoned land includes land subject to land rights, management rights, and land acquired based on a basis of land control that is intentionally left undeveloped, unused, unutilized, and/or unattended.

Accordingly, holders of land rights are expected not only to hold such rights from an administrative perspective, but also to demonstrate actual utilization of the land in accordance with the purpose for which the rights were granted.

This framework reflects the principle that ownership or control of land is not assessed solely on the basis of legal entitlement. Land right holders are also expected to develop, use, and utilize the land consistently with the purpose of the relevant land rights and applicable laws and regulations.

3. Regulation of Abandoned Areas and Abandoned Land

GR 48/2025 authorizes the Government to conduct an inventory, identification, research, and evaluation of land and areas suspected of being abandoned. Through this process, the Government may assess whether the relevant land or area is being utilized in accordance with the purposes underlying the applicable land rights, licenses, concessions, or business licenses.

Following the evaluation process, any land or area determined to meet the criteria for abandoned land or an abandoned area may be designated by the Government as an object of regulation in accordance with the procedures set out in GR 48/2025.

The designation of land or an area as abandoned carries substantial legal implications. Where land is designated as abandoned land, the relevant land rights or form of land control may be revoked, causing the land to revert to direct state control. In addition, land or areas that have been designated as abandoned may subsequently be allocated and utilized by the state for national development, strategic government programs, food security initiatives, and other public interests.

Implications for Business Actors

GR 48/2025 reflects the Government’s continued emphasis on ensuring that land and licensed areas are utilized productively and in accordance with their intended purposes. With the regulatory framework now expressly covering abandoned areas in addition to abandoned land, business actors should closely monitor land assets, concessions, and operational areas that are not actively developed, used, or utilized.

Businesses holding land rights, concessions, or business licenses should carefully evaluate whether the relevant land or areas are being utilized as intended. Failure to actively develop, use, or utilize such land or areas may increase the risk of them being identified as abandoned and becoming subject to regulatory measures under GR 48/2025.

Link PDF: Client-Alert-regarding-New-Regulation-on-Abandoned-Areas-and-Abandoned-Land-2026-10-23.pdf

MACHINERY AND/OR EQUIPMENT RESTRUCTURING PROGRAM

Bayu Wicak — Fri, 25 Sep 2026 09:15:49 +0000

MACHINERY AND/OR EQUIPMENT RESTRUCTURING PROGRAM

In order to enhance productivity and competitiveness in Indonesia’s agro-industry sector, the Ministry of Industry of the Republic of Indonesia introduced a machinery and/or equipment restructuring program (“Restructuring“) under the Regulation of the Minister of Industry No. 15 of 2026 regarding the Restructuring Program in the Agro-Industry Sector (“RM 15/2026“), which took effect on 23 June 2026.

Through RM 15/2026, the government provides a support scheme in the form of partial reimbursement of the purchase price of machinery and/or equipment acquired by industrial companies undertaking the renewal or expansion of their production facilities. The program is intended, among other things, to encourage the industrialization of agro-based natural resources, promote the adoption of advanced technology, and improve the availability of industrial raw materials and/or supporting materials.

Below are some of the provisions of the Restructuring program regulated under RM 15/2026:

1. Form and Amount of the Reimbursement Facility

The Restructuring program is implemented through a partial reimbursement of the purchase price of machinery and/or equipment. An industrial company may receive the reimbursement facility up to 3 (three) times in different budget years, provided that each application relates to different machinery and/or equipment.

The amount of reimbursement depends on the type of machinery and/or equipment purchased. Domestically produced machinery and/or equipment holding a Domestic Component Level (Tingkat Komponen Dalam Negeri – “TKDN“) certificate of at least 25% are eligible for reimbursement of up to 35% of the purchase price.

Meanwhile, domestically produced machinery and/or equipment without such a TKDN certificate are eligible for reimbursement of up to 25% of the purchase price, while machinery and/or equipment that are not produced domestically are eligible for reimbursement of up to 15% of the purchase price.

Reimbursement is granted up to a maximum of Rp1,000,000,000 (one billion Rupiah) per recipient in each budget year, subject to the availability of funds in the budget implementation list.

2. Conditions for Reimbursement

Reimbursement may be granted for purchases of machinery and/or equipment financed through the company’s own funds, bank or non-bank financing facilities, or supplier credit arrangements. For purchases financed through the company’s own funds or financing facilities, the purchase price must be fully paid and supported by the relevant documentary evidence. In the case of supplier credit arrangements, at least 70% of the purchase price must have been paid at the time the reimbursement application is submitted.

3. Criteria and Types of Machinery and/or Equipment

RM 15/2026 stipulates that the reimbursement facility may only be granted for new machinery and/or equipment with a purchase value of at least Rp300,000,000 (three hundred million Rupiah). Such machinery and/or equipment must be used in the production process or its supporting activities, whether as primary or supporting production machinery and/or equipment, and must have been manufactured no more than 4 (four) years prior to the year in which the application for the reimbursement facility is submitted.

4. Requirements for Participation in the Restructuring Program

The Restructuring program is available to agro-industry companies that have commenced commercial production and hold the relevant business licenses under the applicable Indonesian Standard Classification of Business Fields (KBLI), which have been effective for at least 2 (two) years.

Companies intending to participate in the Restructuring program must satisfy several eligibility requirements, including having an account with the National Industry Information System (Sistem Informasi Industri Nasional – “SIINas“), completing a self-assessment of the Industry 4.0 Readiness Index through SIINas, having an investment value of more than Rp10,000,000,000 (excluding land and buildings), and not participating in any other restructuring program administered by the Ministry of Industry of the Republic of Indonesia during the same budget year.

5. Application and Verification Process

Companies seeking to participate in the Restructuring program must submit their applications and supporting documents electronically through SIINas. Once submitted, the application will undergo both administrative and field verification by the Restructuring Program Management Institution (Lembaga Pengelola Program Restrukturisasi).

Following the verification process, the technical team reviews the application and determines whether it is approved, rejected, or placed on a waiting list. For approved applications, reimbursement funds are disbursed after the applicant executes a reimbursement agreement and submits a disbursement request through SIINas.

Conclusion

RM 15/2026 provides an opportunity for agro-industry businesses to obtain government support for the modernization of their production machinery and/or equipment. Companies operating in the agro-industry sector should therefore assess their eligibility for the program and ensure that the required documentation is properly prepared in order to take advantage of the available reimbursement scheme.

Link PDF: BIRP-Client-Alert-re-Restructuring-Program-2026-09-253.pdf

UPDATED REGULATION ON FUEL OIL BUSINESS REGISTRATION NUMBERS

Bayu Wicak — Fri, 18 Sep 2026 09:49:51 +0000

UPDATED REGULATION ON FUEL OIL BUSINESS REGISTRATION NUMBERS

The requirement for business entities in the fuel oil sector to obtain Business Registration Numbers (Nomor Registrasi Usaha – “NRU“) is not a new obligation. The requirement has long formed part of the regulatory oversight framework of the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas – “BPH Migas”) and was previously governed under the Regulation of the BPH Migas No. 3 of 2022 regarding Fuel Oil Business Registration Numbers (“BPH Migas Regulation 3/2022“).

On 18 August 2026, the BPH Migas Regulation No. 2 of 2026 regarding Fuel Oil Business Registration Numbers (“BPH Migas Regulation 2/2026“) came into effect. This regulation revokes and replaces BPH Migas Regulation 3/2022.

While the obligation to obtain an NRU remains unchanged, BPH Migas Regulation 2/2026 introduces several enhancements, including the digitalization of the NRU issuance process, integration with business licensing systems, the implementation of QR codes, and strengthened supervisory mechanisms by BPH Migas.

Key provisions under BPH Migas Regulation 2/2026 include the following:

1. Mandatory NRU Ownership

BPH Migas Regulation 2/2026 restates that every business entity holding a license for fuel oil supply and distribution activities is required to obtain an NRU for each type of business license it possesses. An NRU is issued to business entities undertaking fuel oil processing, pipeline transportation, storage, and/or trading activities.

In addition, the regulation expressly recognizes the NRU as the official identity of a business entity for the purpose of conducting downstream fuel oil business activities. This underscores the role of the NRU as a key regulatory instrument within the downstream fuel oil sector, rather than merely an administrative registration requirement. Accordingly, a business entity operating under more than one type of business license should ensure that each license is supported by the appropriate NRU corresponding to the relevant licensed activity.

2. Integration of NRU with the OSS System and MEMR Licensing System

One of the principal changes introduced by BPH Migas Regulation 2/2026 is that NRUs are now issued based on licensing data obtained through the integration of the BPH Migas system, the licensing system of the Ministry of Energy and Mineral Resources (“MEMR“), and the Online Single Submission (“OSS“) system.

This integration reflects a shift from a largely administrative registration process toward a more digitalized system connected to the national business licensing framework.

3. Issuance of QR Codes as Part of the NRU

BPH Migas Regulation 2/2026 provides that an NRU will be issued in the form of an electronic certificate and a QR code. A QR code forms part of the registration identity issued by BPH Migas and serves as a digital verification tool for registered business entities.

In addition, business entities are required to display the QR code at their principal facilities and infrastructure and to report its installation to BPH Migas through the designated system. These requirements reflect BPH Migas’ broader effort to digitalize NRU administration and enhance regulatory oversight of downstream fuel oil activities.

4. Sanctions

Administrative sanctions may be imposed on NRU holders that: (i) fail to install the NRU QR code on their main facilities and/or infrastructure as required under BPH Migas Regulation 2/2026; and/or (ii) fail to report the installation of such QR code to BPH Migas through the designated system. The available administrative sanctions include written warnings and/or revocation of the NRU.

With the introduction of this sanctioning mechanism, compliance with NRU requirements is no longer limited to merely obtaining and maintaining registration status. It also encompasses ongoing obligations relating to the use, installation, and reporting of QR codes as part of BPH Migas’ digital supervisory framework.

Conclusion

Although BPH Migas Regulation 2/2026 does not introduce a new obligation to obtain an NRU, it reflects a broader move toward a more integrated and digitalized regulatory environment. Accordingly, business entities should ensure that the information reflected in the OSS system and their business licenses remains accurate, consistent, and up to date, and that any changes to corporate information or licensing details are promptly updated, as such information will serve as the basis for the issuance and ongoing supervision of NRUs by BPH Migas.

Link PDF: Client Alert regarding Updated Regulation on Fuel Oil Business Registration Numbers (2026-09-18)