Current policy and regulation analysis of contract of oil and gas in Indonesia

On 16 January 2017, Indonesian Ministry of Energy and Mineral Resources (MEMR) had issued a new Ministerial Regulation (MR No.8/2017) introducing a Gross Split scheme for conventional oil and gas contracts.A key change in the new regulation is the removal of cost recovery mechanism.On 29 August, MEMR had issued Ministerial Regulation (MR) No.52/2017 to revise and update the Gross Split fiscal terms for conventional oil and gas contracts, originally established with MR No.8/2017.The revision was made to stimulate upstream investments in the country, after considering feedback