This research aims to characterise and study the lipase production of Micrococcus sp. L69 isolated from palm oil-contaminated soil. Lipase production was carried out by cultivating the bacteria in the medium containing vegetable oils. The lipase activity was determined by spectrophotometric method toward p-nitrophenyl palmitate as a substrate. The results of this research showed that the bacteria isolate L69 was a unique lipolytic bacteria. Based on sequence of 16S rRNA gene, the bacteria had low similarity level (≤ 93%) to sequences data listed in GenBank. Olive oil and coconut oil are good carbon sources for bacterial growth and lipase production. The highest lipase activity achieved at temperature of 50°C and pH 7.0. The addition of 7 mM Ca2+ and Fe++ enhanced the lipase activity for 1.95- and 2.26-fold, respectively.