Indonesia oil and gas industry shows strong long-term prospects

The Indonesian oil and gas industry maintains a positive outlook and is not entering a period of decline, according to M. Kholid Syeirozi of the National Energy Council. He noted that the sector's prospects offer significant opportunities for Indonesia to achieve developed nation status by 2045.

Despite this optimism, challenges remain regarding governance and exploration. In the Riau Islands, specifically the Natuna Sea, exploration has not been optimal due to regulatory and governance issues. However, there are approximately 110 potential areas in Indonesia with unexplored oil and gas reserves identified through January 2026.

The industry ecosystem involves a complex network of regulators, such as the Ministry of Energy and Mineral Resources and SKK Migas, as well as investors, operators, and service providers. Current discussions regarding the revision of the Oil and Gas Law (UU Migas) could lead to structural changes, including the potential delegation of upstream management to a specialized oil and gas business entity. Clarity in these new regulations is considered essential to prevent investment delays across the supply chain.