Indonesia just issued a new regulation (Reg. 42/2017) that extends governmental control on private and foreign investment in the energy and mining sectors.

Whilst similar forms of control already existed in the upstream oil & gas and mining sectors, Reg. 42/2017 now extends these to the downstream oil & gas and power sectors. The new regime will directly impact investment strategies in these sectors and raises questions about the enforceability of share pledges in energy companies.