Central and Local Governments Must Collaborate to Safeguard National Upstream Oil and Gas Industry - Energy Sector

TANGERANG – The Indonesian Petroleum Association (IPA) has emphasised government support as critical for sustaining the national upstream oil and gas industry amid increasingly fierce global energy investment competition. Both central and local governments are urged to simplify licensing procedures to foster industry growth.

Executive Director Marjolijn Wajong commended the government’s commitment, noting Energy and Mineral Resources Minister’s emphasis on collaboration between government and industry stakeholders to achieve national energy security through enhanced exploration and accelerated development of discovered fields. ‘The government referred to here includes not only the central government but also local authorities,’ Wajong stated last week at ICE BSD, Tangerang.

IPA welcomed the government’s pledge to improve the energy investment climate, including faster permitting and stronger legal certainty. These measures are essential for the capital-intensive, high-risk upstream oil and gas sector, which operates on long investment cycles.

‘We consistently highlight that the upstream oil and gas industry is long-term, capital-intensive, and high-risk, requiring consistent policies to ensure existing and prospective investors have confidence in committing capital to Indonesia,’ Wajong explained.

IPA hopes the government’s commitment will materialise through consistent policies and rapid implementation at both central and local levels to accelerate national upstream industry development and support Indonesia’s energy security targets.

Chairperson Teresita Listyani praised industry players for trusting IPA Convex 2026 as a platform for key agreements, including signing of Work Area (WK) contracts, announcements of WK bids, tender results, and commercial agreements such as PJBG, HOA, and JSA. ‘This demonstrates the upstream oil and gas industry is not sunset but remains active to meet Indonesia’s energy needs,’ she said.