Bahlil Confirms No Cut in Gas Export Quota for 2026

Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has assured that the government will not cut the gas export quota in 2026. The pledge is intended to maintain the investment climate and reassure Contract of Work (KKKS) operators amid geopolitical and geo-economic uncertainty. He said all gas export allocations contracted to overseas markets have been approved by the government, and policy certainty is necessary for upstream oil and gas projects to proceed more quickly and remain attractive to investors. ‘In 2026 there will be no further cuts to export quotas for markets or those already contracted overseas. So there is no need to be worried,’ the ESDM Minister said during his remarks at the Indonesian Petroleum Association Convention and Exhibition 2026 in Tangerang, Banten, on Thursday (21/5/2026). Bahlil explained that all export approvals have been signed by the government. He said domestic energy needs will be met without disturbing the contracted export markets. The government also asked PT PLN (Persero) and PT Perusahaan Gas Negara Tbk to absorb gas from new projects that do not yet have domestic market certainty. The move is to ensure upstream oil and gas projects can continue and have offtaker guarantees. ‘If it is marketed overseas and they are still slow, I have asked Danantara—in this case PLN, PGN and several other companies—to take domestic offtake so that we can have offtaker certainty,’ Bahlil said. He regards market certainty as a key factor in accelerating the development of new oil and gas projects. The government does not want uncertainties in gas absorption to hinder investment or national oil and gas production. The government is encouraging SKK Migas to speed up the licensing process for upstream oil and gas projects. Bahlil opened space for business players to report bureaucratic obstacles that still hinder investment and production. ‘I call on SKK Migas colleagues; we have made various efforts to reform regulations and accelerate. But if there are still delays, please report,’ he said firmly. Bahlil emphasised that the government will apply equal treatment to all upstream oil and gas players, from state-owned enterprises and KKKS to local entrepreneurs and regional governments. He urged oil contractors to give more room to regional entrepreneurs as long as they have the capability and professional standards. On that occasion, the Energy and Mineral Resources Minister witnessed the signing of eight Working Areas (WK) contracts from the 2025 auction: WK Gagah, Bintuni, Karunia, Drawa, Jalu, Southwest Andaman, Barong, and Nawasena. The government also announced 118 potential new oil and gas blocks to support exploration and increase national energy reserves.