JAKARTA. The Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, believes that in order to increase oil and gas production to 1 million barrels per day, Indonesia needs investment worth USD 187 billion by 2030.

“This means that the average annual investment needs might reach USD 18 billion,” Tasrif explained in the official release yesterday (20/12). Meanwhile, the current investment level only reaches USD 10 to 11 billion. “There is still a wide gap,” he added.

According to Tasrif, the condition at the moment makes it impossible to reach the production target of 1 million barrels of oil per day and 12 billion standard cubic feet per day by 2030 without any investment boost.

Tasrif also reminded that the increased global oil price would not immediately drive upstream investments in oil and gas. There have been changes in the business strategies of global oil companies that invest more in renewable energy resources. These changes are challenges that must be faced together so that the oil and gas upstream sector remains one of the investment priorities. (AM/ZH)