Enviro News Asia, Jakarta — The Government of Indonesia announced efforts to increase national oil and gas production by targeting 1 million barrels of oil per day (bpd) and 12 billion standard cubic feet of gas per day (BSCFD). Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot delivered the statement during the Grand Launching of Indonesia Oil and Gas Exploration in Jakarta, Tuesday (25 November). The initiative seeks to strengthen energy security, drive economic growth, and attract greater investment to support long-term national development.
The government highlighted the country’s significant hydrocarbon potential, noting that out of 128 identified oil and gas basins, only 20 have been developed, while 108 basins remain untapped and offer substantial opportunities for exploration. To unlock this potential, the government will allocate major funding in 2025–2026 and empower the Geological Agency to conduct advanced 2D and 3D seismic surveys aimed at accelerating exploration activities.
To facilitate investor participation, the government has issued Government Regulation No. 28/2025 on risk-based business licensing and ESDM Regulation No. 14/2025 governing cooperation schemes to boost oil and gas production. In addition, the Ministry of Energy and Mineral Resources has prepared 75 oil and gas blocks across Sumatra, Kalimantan, Sulawesi, Papua, and offshore regions, ready to be developed through assignment or regular bidding processes. Nine blocks have already been designated for development by business entities, with more blocks to follow.
The government’s strategy to increase oil production includes identifying and evaluating undiscovered reserves, implementing Enhanced Oil Recovery (EOR) and waterflooding in promising fields, and optimizing idle wells. These measures aim to maximize production within existing working areas. The government is also expanding vital infrastructure, including transmission and distribution pipelines, refinery capacity, storage tanks, and petroleum cargo transport systems.
During the event, the government signed an agreement for the Perkasa Working Area, which holds an estimated 228 MMBO or 1.3 TCF in potential resources. The contract includes a USD 300,000 signature bonus and a USD 2.25 million firm commitment, reflecting strong investor confidence in Indonesia’s upstream sector and further supporting national efforts to enhance oil and gas production. (*)
