Indonesia offers 116 new oil and gas blocks to global investors
JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is offering 116 new oil and gas working areas to global investors in a bid to boost national output.
In addition to opening new upstream blocks, the government is strengthening technological and operational collaboration in existing working areas through Ministerial Regulation No. 14 of 2025.
Director-general of oil and gas at ESDM, Laode Sulaeman, said the move forms part of a broader strategy to safeguard national energy security while attracting fresh investment into the upstream sector.
Under the 2026 state budget, Indonesia has set a crude oil production target of 610,000 barrels per day, according to Antara.
Laode noted that a major discovery at the Geliga well in the Ganal Block, offshore East Kalimantan, is a key factor supporting the target.
The well is estimated to hold around 5 trillion cubic feet (TCF) of gas and approximately 300 million barrels of condensate.
He said the discovery reinforces the government’s commitment to maintaining energy sovereignty amid rising global geopolitical tensions.
The government has also prepared mitigation measures following the closure of the Strait of Hormuz, a route that accounts for around 20% of Indonesia’s crude oil supply.
“We are implementing various mitigation measures, including diversifying energy imports, optimising domestic supply and biofuels, improving refinery performance, strengthening bilateral cooperation, and enhancing efficiency in fuel and LPG consumption,” Laode said.
To improve investment attractiveness, ESDM is also refining regulations by introducing contract flexibility, allowing investors to choose or switch between Gross Split and Cost Recovery schemes.
The government is also adjusting fiscal terms through profit-sharing mechanisms tailored to field risk profiles, offering project-based incentives, and accelerating licensing processes in line with Government Regulation No. 28 of 2025, which guarantees certainty in approval timelines.
Laode stressed that Indonesia is not only offering substantial resources but also concrete investment opportunities.
“Reforms are under way. Opportunities are wide open. The government invites investors to be part of a new chapter in Indonesia’s upstream oil and gas sector,” he said. (DK/ZH)
