Indonesia launches massive oil and gas exploration push, invites global investors to develop 108 untapped basins

• Indonesia aims to nearly double its crude oil production to one million barrels per day (bpd) by 2029, targeting 108 untapped oil and gas basins to reverse its decade-long decline in hydrocarbon output.
• The government has introduced streamlined licensing (Govt. Regulation No. 28/2025) and 75 new oil/gas blocks to attract global investors, with nine already awarded.
• Plans include Enhanced Oil Recovery (EOR), waterflooding and reactivating inactive wells to maximize output, alongside infrastructure expansions like pipelines and refineries.
• The Perkasa Working Area contract (228M barrels oil + 1.3T cubic feet gas) was signed, featuring a 300K bonus and 2.25M firm commitment, signaling strong interest.
• Despite hurdles like deepwater exploration complexity and infrastructure gaps, success could reduce ASEAN reliance on Middle Eastern/Russian energy and bolster Indonesia’s energy sovereignty.

In a bold move to revitalize its energy sector, Indonesia has unveiled an ambitious plan to unlock 108 untapped oil and gas basins across its vast archipelago, aiming to nearly double its crude oil production to one million barrels per day (bpd) by 2029.

The initiative, announced by Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, seeks to reverse Indonesia’s decade-long decline in hydrocarbon output and reduce reliance on imports. Currently, Southeast Asia’s largest economy produces only 600,000 bpd, a far cry from its peak production years.

According to BrightU.AI‘s Enoch, hydrocarbons are a large group of organic compounds composed solely of carbon (C) and hydrogen (H) atoms, with the general chemical formula CnH2n+2, where “n” is the number of carbon atoms. They are categorized into several subgroups based on their structure and properties. The majority of hydrocarbons in use today are derived from fossil fuels, such as petroleum, natural gas and coal. These fuels are formed from the remains of ancient organisms and are found in deposits beneath the Earth’s surface.

Out of 128 identified basins, only 20 have been developed, leaving vast hydrocarbon reserves unexplored. The government is now prioritizing advanced 2D and 3D seismic surveys to attract global investors and accelerate exploration.

“Our shared vision is clear. By 2029, Indonesia will achieve its production target of one million barrels of oil per day, boost energy security and advance sustainable development,” Yuliot declared at the Grand Launching of Indonesia Oil and Gas Exploration (IONGE) 2025 in Jakarta.

Regulatory reforms and investment incentives

To streamline investment, Indonesia has introduced Government Regulation No. 28/2025 on Risk-Based Business Licensing and Ministerial Regulation No. 14/2025, ensuring transparent cooperation frameworks for upstream projects.

The government has also prepared 75 oil and gas blocks across Sumatra, Kalimantan, Sulawesi, Papua and offshore regions. Nine have already been awarded, with more expected through auctions and direct assignments.

Key strategies include:

• Enhanced Oil Recovery (EOR) and waterflood techniques to maximize output from mature fields.
• Optimizing inactive wells for short- and medium-term gains.
• Accelerating infrastructure, including pipelines, refinery expansions and storage facilities.

During the event, Indonesia signed a contract for the Perkasa Working Area, estimated to hold 228 million barrels of oil equivalent (MMBOE) and 1.3 trillion cubic feet (TCF) of gas. The deal includes a 300,000-signature bonus and 2.25 million in firm commitments, showcasing strong investor interest.

IONGE 2025: A global showcase for Indonesia’s energy future

The IONGE 2025 summit, attended by 500+ participants—including oil majors, financial institutions and research bodies—aims to position Indonesia as a premier exploration destination. Key highlights include:

• Prospectivity catalogs and updated geophysical data.
• IONGE digital platform, offering centralized investment and regulatory updates.
• Technical panels on fiscal policies, exploration challenges and infrastructure needs.

Despite the enthusiasm, hurdles remain:

• Deepwater and frontier basin complexities requiring cutting-edge technology.
• Infrastructure gaps in remote regions.
• Market volatility impacting long-term investment decisions.

Yet, success could reshape ASEAN energy security, reducing regional dependence on Middle Eastern and Russian supplies.

Indonesia’s aggressive push to develop its 108 untapped basins marks one of the most significant upstream opportunities in Asia. With regulatory reforms, strategic partnerships and global investor outreach, Jakarta aims to reclaim its status as a major hydrocarbon producer—while securing its energy future.

As Yuliot emphasized: “With collaboration and innovation, we can accelerate exploration investments, strengthen energy security and build a sustainable energy future for Indonesia.”

The world will be watching closely—as will energy markets—to see if this gamble pays off.

Watch the video below about OPEC+ announcing a sharp cut to global oil production.

This video is from the Chinese taking down EVIL CCP channel on Brighteon.com.

Sources include:

OilPrice.com

BrightU.ai

AsiaToday.id

DiscoveryAlert.com.au

VOI.id

Brighteon.com