Boosting Lifting, Government Invites Investors To Work On 108 Oil And Gas Basins

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung (Photo: Antara)

JAKARTA - The government through the Ministry of Energy and Mineral Resources (ESDM) seeks to produce 1 million barrels of oil per day (bpd) and 12 billion cubic feet of gas per day (BSCFD).

To support the achievement of this target, the Government highlighted the large national oil and gas potential which reached 128 oil and gas basins that have been identified throughout Indonesia.

Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot said, of the 128 oil and gas basins that have been identified, only 20 have been developed, the remaining 108 are areas rich in data and opportunities.

"In 2025 and 2026, the Government will allocate a significant budget and empower the Geological Agency to conduct further 2D and 3D surveys, which will pave the way for exploration to open potential for this resource. Our common vision is clear, in 2029, Indonesia will achieve its production target of 1 million barrels of oil per day, strengthen national energy sovereignty, and encourage sustainable development," said Yuliot at the Grand Launching of Indonesia Oil and Gas Exploration in Jakarta, Tuesday, November 25.

Yuliot said, this great potential is expected to attract oil and gas investors to be able to invest in Indonesia. To support a good investment climate, the Government has issued Government Regulation no. 28 of 2025 concerning the Implementation of Risk-Based Business Licensing and Regulation of the Minister of Energy and Mineral Resources No. 14 of 2025 concerning Cooperation in Management Part of the Working Area for Increasing Oil and Gas Production, which opens the way for transparent and efficient cooperation.

The Ministry of Energy and Mineral Resources, he said, has also prepared 75 oil and gas blocks spread across Sumatra, Kalimantan, Sulawesi, Papua, and offshore areas. All of these blocks are ready to be developed through a regular assignment or auction mechanism.

Currently, added Yuliot, there are 9 oil and gas blocks that have been appointed to be developed by business entities, and a number of other blocks will follow.

Not only that, the Government is also implementing a strategy to increase oil production which focuses on identifying and evaluating reserves that have not been found. In addition, adequate Oil Recovery (EOR) and waterflood techniques are also applied in promising fields, as well as optimizing the use of unused wells.

In the short to medium term, the Government's strategy to increase oil production focuses on identifying and evaluating undiscovered reserves, implementing the Enhanced Oil Recovery (EOR) and waterfood techniques in promising fields, as well as optimizing the use of unused wells. These directed steps are designed to maximize production from existing working areas.

"In addition to increasing oil and gas production, the Government is also building infrastructure, including transmission pipeline networks and oil and gas distribution from working areas to industrial areas, increasing the capacity of domestic oil refineries, oil storage tanks, and increasing the number of oil and gas cargo shipments," said Yuliot.