Upstream Oil And Gas Investment Throughout Semester I-2025 Reaches IDR 118 Trillion

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that the realization of upstream oil and gas investment in the first semester of 2025 increased by 28.6 percent to 7.19 billion US dollars or around Rp118 trillion compared to the realization in the same period 2024 amounting to 5.59 billion US dollars.

The outlook for investment realization by the end of 2025 is estimated to reach around US$16.5 billion to US$16.9 billion.

This figure will exceed the realization of 2024 investment of US$14.4 billion and will become the largest upstream oil and gas investment in Indonesia in the last 10 years.

Based on SKK Migas data in the last 9 years of the 2015-2024 period, the highest investment occurred in 2015 amounting to USD 15.3 billion.

After that experienced a downward trend with one of the lowest periods being in 2020 during the Covid-19 pandemic with investment realization of 10.5 billion US dollars.

Since 2021 the trend of investment has continued to increase and in 2024 it has reached 14.3 billion US dollars.

"Efforts to improve the upstream oil and gas investment climate carried out by the Government have given confidence to investors regarding the future of the upstream oil and gas industry which is increasingly interesting," said Head of SKK Migas Djoko Siswanto at a press conference on upstream oil and gas performance in Jakarta, Monday, July 21.

Djoko further added that the increasing competitiveness of upstream oil and gas investment in Indonesia has also increased the ranking of attractiveness investors published by S&P Global in 2025 which reached a score of 5.35 or consistently increased since the lowest score in 2021 which was below 4.75.

"The increase in the assessment of attractiveness investors is contributed by the findings of large upstream oil and gas findings in 2023 and 2024 as well as improvements to the fiscal system by the Government. So that currently there are no more non-economic field terms, because the government provides support so that how the field becomes economic, among others, with the provisions of PSC New Gross Split, the elimination of LNG VAT, gas infrastructure and others," explained Djoko.

The increase in upstream oil and gas investment has driven the increase in the main upstream oil and gas activity which has a direct impact on efforts to maintain and increase national oil and gas production.

Development well drilling activities until June 2025 have completed 409 wells, an increase of 14 percent compared to the same period in 2024 of 358 wells.

Likewise, workover activities have completed 517 wells or increased by 6 percent and for well service activities it has reached 20,644 activities or an increase of 12 percent.

Regarding efforts to increase oil and gas reserves, Djoko said that the trend of investment in the exploration sector also continues to increase.

In 2020 investment for exploration amounted to USD 0.5 billion, an increasing trend and in 2024 exploration investments reached USD 1.3 billion and for 2025 the exploration investment prognosis of USD 1.5 billion and will be the largest exploration investment in the last 10 years.