The Indonesian government has announced plans to increase oil and gas production in the country, by cutting regulations, reactivating idle wells and enhancing output at already producing assets. The government notably plans to reactivate 5,000 idle wells and increase output by 200 kb/d. It will also prepare 60 oil and gas blocks to be offered to investors, including 14 Potential Working Areas, which have been and will be offered from 2024 to 2028. The government also aims remove various regulations that hinder the exploration process, cutting from 320 permits to 140 permits. The new policy is aimed at boosting Indonesia’s energy security, after a decline in hydrocarbon production.
Indonesia’s crude oil and NGL output has fallen by 33% since 2010, reaching 740 kb/d in 2023, while its gas output fell by 21% during the same period, reaching 68 bcm in 2023. In the meantime, consumption in the country has risen steadily.
The Government also plans to increase the share of palm oil-based fuel in diesel to 50%, compared to the current 35%, and reduce liquefied petroleum gas (LPG) imports, by doubling production of the cooking fuel from the current 1.7 Mt/year.
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