In addition to opening new oil and gas working areas (WK), the government is establishing technological and operational collaboration in existing working areas through ESDM Ministerial Regulation No. 14 of 2025, according to the ministry’s director general of oil and gas, Laode Sulaeman said in a statement on Friday (April 24).
As stipulated in the 2026 State Budget, the oil production target is projected at 610,000 barrels of oil per day.
Laode stated that the major discovery in the Geliga Well, Ganal Block, in offshore East Kalimantan, which is estimated to have a gas potential of 5 TCF and 300 MMbbl of condensate, is crucial for achieving this production target.
Therefore, he reiterated his commitment to maintaining national energy sovereignty amidst increasingly challenging global geopolitical tensions.
The Indonesian government has implemented comprehensive mitigation measures following the closure of the Strait of Hormuz due to rising tensions in the Middle East, which is a crucial route for an average of 20 percent of Indonesia’s crude oil supply, he explained.
“Currently, we are carrying out mitigation measures including diversifying energy imports, optimizing domestic and biofuel supplies, improving refinery performance, strengthening bilateral cooperation and implementing efficient fuel or LPG consumption policies,” Laode noted.
To increase investment attractiveness, the ministry has been improving regulations through contract flexibility that allows investors to freely choose or switch between Gross Split and Cost Recovery schemes, fiscal improvements by adjusting profit sharing (split) to reflect field risk profiles, providing incentives based on project economics, and accelerating licensing in accordance with Government Regulation (PP) Number 28 of 2025, which guarantees certainty in the timing of permit approvals.
Laode added that Indonesia offers not only vast resources but also real opportunities. The government is taking concrete steps to ensure investment can move faster with greater certainty, he affirmed.
“Reforms are underway. Opportunities are available. The government invites investors to be part of Indonesia’s next chapter in the upstream oil and gas sector,” Laode concluded.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Primayanti
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