ESDM Offers 116 New Oil and Gas Blocks to Achieve Production Targets

The government is inviting investors to participate in the next chapter of Indonesia’s upstream oil and gas sector. Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources is opening 116 new oil and gas blocks for global investors through the offering of oil and gas working areas to achieve production targets. “The government is also pursuing several strategic steps to reach these production targets, including opening 116 new oil and gas blocks for global investors through the offering of oil and gas working areas, as well as opening technological and operational collaborations in existing working areas through Ministry of Energy and Mineral Resources Regulation Number 14 of 2025,” said Director General of Oil and Gas Laode Sulaeman in an official statement received in Jakarta on Friday. As stipulated in the 2026 State Budget, the oil production target is projected at 610,000 barrels of oil per day. On that occasion, he reaffirmed his commitment to maintaining national energy sovereignty amid escalating global geopolitical challenges. One strategic step taken by the government is achieving energy self-sufficiency in line with President Prabowo Subianto’s Astacita vision. The Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources has implemented several comprehensive mitigation measures following the closure of the Strait of Hormuz due to tensions in the Middle East, which is a crucial route for an average of 20 percent of Indonesia’s crude oil supply. To increase investment attractiveness, the Directorate General of Oil and Gas has also carried out fundamental regulatory transformations through contract flexibility that allows investors to freely choose or switch between the Gross Split and Cost Recovery schemes, fiscal improvements by adjusting the profit-sharing split based on field risk profiles, and providing project-based economic incentives, as well as accelerating permitting in accordance with Government Regulation Number 28 of 2025, which guarantees certainty in approval timelines. Laode added that Indonesia not only offers vast resources but also real opportunities. The government is also taking concrete steps to ensure investments can move faster with greater certainty. “Reforms are underway. Opportunities are available. The government invites investors to be part of the next chapter of Indonesia in the upstream oil and gas sector,” said Laode.