Indonesia is taking decisive steps to revitalize its oil and gas industry amid declining production and increasing consumption. The Indonesia Exploration Forum (IEF), held in Surabaya on 14-15 October 2024, brought together industry executives and government officials to address these challenges. The government is focusing on large-scale exploration efforts, particularly in eastern Indonesia, with 34 joint exploration studies currently underway. To stimulate growth, new Production Sharing Contracts (PSCs) have been signed for working areas in Sumatra and Sulawesi, with plans to prepare over 60 new oil and gas blocks in the next five years.

The country aims to achieve ambitious production targets of 1 million barrels of oil per day (BOPD) and 12 billion cubic feet of gas per day (BSCFD). However, oil production has been steadily declining since 2015, reaching 576,000 BOPD in the first half of 2024. This decline has led to a significant deficit, with consumption averaging 1.6 million barrels per day, resulting in costly imports that impact the national economy and the value of the rupiah.

To address these issues, the government is implementing several strategies. President Joko Widodo has ordered the optimization of existing oil wells and simplification of regulations to attract investment. Energy and Mineral Resources Minister Bahlil Lahadalia has warned of potential license revocations for idle oil wells, particularly targeting the approximately 16,990 inactive wells out of the country's 44,985 total wells. This approach aims to optimize existing resources and reduce Indonesia's reliance on oil imports, which currently cost the nation between 400-500 trillion rupiah annually.
 

Sources: 

https://indonesiabusinesspost.com/insider/oil-gas-firm-executives-meet-for-large-scale-exploration-energy-security-measures/

https://indonesiabusinesspost.com/insider/skk-migas-seals-psc-deals-for-amanah-and-melati-blocks/

https://setkab.go.id/en/indonesia-should-increase-oil-gas-lifting-president-jokowi/

https://jakartaglobe.id/business/bahlil-lahadalia-time-to-optimize-indonesias-16000-idle-oil-wells