Indonesia Signals Major Upstream Push with 60 New Oil & Gas Blocks
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has reaffirmed its commitment to accelerating energy security and boosting investor confidence through increased upstream investments and production capacity.
“In the next two years, we aim to offer 60 new oil and gas working areas, underlining our commitment to energy sustainability and investment expansion,” Head of SKK Migas, Djoko Siswanto, said while addressing a session at the 49th Indonesia Petroleum Association Conference and Exhibition (IPA Convex), on Wednesday, May 21, 2025.
“Exploration activity in open and active areas has significantly recovered, and recent discoveries have placed Indonesia as a key exploration hotspot in Southeast Asia,” he added.
Representatives from major energy players, such as Pertamina, ExxonMobil, Shell, Petronas, bp, Medco, ENI, and CNOOC attended the session.
Djoko emphasized that investor trust was critical in advancing Indonesia’s energy future, pledging SKK Migas’ role as a “proactive and responsive partner” to support upstream ventures.
He also noted the importance of Indonesia’s flexible fiscal policies, improved regulatory frameworks, and growing data connectivity in attracting global interest in its oil and gas sectors.
In a technical briefing, Deputy for Exploration, Development and Working Area Management at SKK Migas, Rikky Rahmat Firdaus, presented data on Indonesia’s vast hydrocarbon potential. Out of 128 identified sedimentary basins, only 20 are currently producing, while 27 have confirmed hydrocarbon discoveries yet remain untapped.
Indonesia currently holds around 9 billion barrels of oil equivalent (BBOE) in proven reserves, across 162 working areas. SKK Migas is targeting new exploration and development to unlock these reserves.
“To facilitate investment, we offer three main entry mechanisms: submission of proposals for new working areas in open regions, farm-in opportunities in existing blocks, and strategic partnerships with current operators,” Rikky cited.
SKK Migas plans to release monthly updates on open farm-in opportunities and will serve as a facilitator by connecting potential partners with operators.
Notably, the regulator is finalizing a new regulation enabling strategic alignments without altering participating interests, aimed at boosting field development that might otherwise stall due to technical or financial challenges.
SKK Migas reiterated its role in providing accessible data, streamlined processes, and dedicated investor engagement to accelerate upstream project realization.
“We believe strong collaboration is the cornerstone of building national energy security and fostering inclusive economic growth,” Rikky said.
INTERVENTION
Founder & Advisor at ReforMiner Institute, Pri Agung Rakhmanto, emphasized the critical role of government intervention to support upstream oil and gas infrastructure development, calling it foundational for downstream industrialization.
“The upstream sector underpins Indonesia’s downstream ambitions. When market mechanisms fall short in developing infrastructure, the government must step in, either through policy or direct funding,” Pri Agung said.
The Ministry of Energy and Mineral Resources (ESDM) targets oil production of 1 million barrels per day and 12 billion cubic feet (BCF) of gas by 2030. These targets are aimed at ensuring national energy security while stimulating domestic refining and processing industries.
Pri Agung also stressed the need for market-based strategies to diversify downstream energy sources and ensure sustainable pricing. “Substituting imported energy inputs with increased domestic production can create a powerful multiplier effect across Indonesia’s industrial structure,” he said.