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Indonesia battles oil production slump with bold new drilling plans

The country consumes 1.6 million barrels of oil a day, more than half of which is imported

Summarise
Elisa Valenta

Elisa Valenta

Published Tue, Jul 15, 2025 · 07:00 AM
    • The push to reduce import dependence and ramp up domestic oil production is not only about securing supply, but also about curbing rising energy import bills and easing long-term fiscal pressures.
    • The push to reduce import dependence and ramp up domestic oil production is not only about securing supply, but also about curbing rising energy import bills and easing long-term fiscal pressures. PHOTO: AFP

    [JAKARTA] Indonesia is banking on 75 newly offered oil and gas blocks to stem its declining domestic output, but analysts warn that the boost may be short-lived unless deeper investment and structural reforms follow.

    The government hopes the expanded portfolio will help lift production to 605,000 barrels a day this year and eventually reach its longstanding target of one million barrels by 2030.

    But with more than half of Indonesia’s crude oil needs already met through imports and demand still rising, the stakes are high if these new blocks fail to deliver.

    IndonesiaAsia-Pacific

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