Kangean Energy Indonesia Ltd. (KEI), an upstream oil and gas contractor operating in East Java waters, has refuted recent allegations suggesting that its offshore activities have caused environmental harm and failed to benefit surrounding communities.

“All operations are conducted under rigorous oversight by the government and local stakeholders, and are regularly monitored to ensure environmental protection, regulatory compliance, operational safety, and long-term sustainability,” the company said in a statement released on Tuesday, June 25, 2025.

KEI operates under a production sharing contract as a Oil Contractors (KKKS), with major operations in the offshore Kangean block.

KEI emphasized that it operates strictly under the authority of the Government of Indonesia through the Upstream Oil and Gas Regulatory Task Force (SKK Migas) and within the framework of the Ministry of Energy and Mineral Resources (ESDM).

The clarification follows a series of media reports accusing the company of damaging marine ecosystems and provoking local unrest in Pagerungan Besar, one of the company’s key operational zones.

KEI dismissed the claims, calling them “inaccurate and slanderous,” and asserted that all activities are conducted legally and with full environmental due diligence.

The company cited Article 23 of the Law on Management of Coastal Areas and Small Islands (PWP3K), which permits oil and gas operations on small islands as long as they are outside conservation zones and supported by valid permits.

“We have secured the Marine Spatial Utilization Appropriateness (KKPRL) permit, which is a mandatory requirement to ensure our activities align with existing spatial and zoning plans,” the company added.

To reinforce its commitment to environmental stewardship, KEI highlighted that it had earned a Green PROPER rating the second-highest in Indonesia’s national environmental performance index for two consecutive years (2023–2024). The rating is awarded by the Ministry of Environment to companies that go beyond basic regulatory compliance.

Since 2001, KEI has also maintained an ISO 14001 certification, an internationally recognized standard for environmental management systems. According to the statement, ongoing environmental monitoring is conducted in collaboration with accredited institutions and reputable universities.

Community engagement

The company claimed it has consistently implemented Community Development Programs (PPM) in coordination with local governments, civil society, and stakeholders, aiming to foster inclusive economic benefits.

“We are open to dialogue and willing to engage constructively with any party, including supporting legal processes where violations are suspected,” the statement read.

KEI concluded by expressing regret over what it called “misleading coverage” and reiterated its readiness to clarify its operations transparently.

“As a government-appointed contractor, KEI is fully committed to delivering energy responsibly and sustainably for the nation’s benefit.”