Get Ready: Government Opens 10 Oil and Gas Block Areas to Investors

Jakarta — CNBC Indonesia - The government continues to strengthen national energy resilience, including exploration efforts and measures to boost oil and gas production. In line with this, the Ministry of Energy and Mineral Resources (ESDM) announced the opening of 10 potential oil and gas block areas that have completed the in-depth study phase. Director General of Oil and Gas at the ESDM, Laode Sulaeman, said the 10 areas form part of 110 potential areas that have been mapped up to February 2026 and whose studies were completed by the Geology Agency and LEMIGAS, resulting in higher-quality data. He noted that the studies are part of the Government’s proactive role through the Geology Agency and LEMIGAS to enhance oil and gas data quality to attract potential investors, especially for exploration. The 10 areas are part of the 110 potential oil and gas blocks that were opened broadly by the Ministry of ESDM. The areas are: 1. RUPAT 2. PURI 3. KARAPAN BARU 4. PESUT MAHAKAM 5. BENGARA II 6. MARATUA II 7. SOUTH MATINDOK 8. LAO-LAO 9. ROMBEBAI 10. NORTHERN PAPUA /JAYAPURA. The Government also remains committed to creating an attractive upstream oil and gas investment climate through various new fiscal policies. Some of the concessions offered include more attractive fiscal terms with a split or production sharing under the Contractor Cooperation Contract (KKKS) up to 50% (previously only 15-30%). In addition, oil and gas contract flexibility allows KKKS to choose either Cost Recovery or Gross Split, upstream incentives to optimise production, and exemption from indirect tax during the exploration period. ‘The government is increasingly open and actively engaged in facilitating faster licensing and cross-agency bureaucracy. The government is also conducting direct exploration with financing from the state budget (including seismic), to reduce exploration risks and encourage investment,’ Laode said. He added that prospective investors with the capability to carry out exploration and exploitation activities in Indonesia are invited to express interest through two channels: Direct Offer via Joint Studies or Regular Auctions. Proposals for Direct Offers or Regular Auctions for the 10 areas may be submitted to the Directorate General of Oil and Gas from 1 April 2026 to 10 April 2026, in full and correct form. ‘In line with directives from the Minister of ESDM, we are providing facilitation and opening opportunities to potential investors, oil and gas companies capable of conducting exploration and exploitation activities in Indonesia,’ Laode said. To assist potential investors, the Directorate General of Oil and Gas is also offering coaching services to prepare Joint Study proposals or Regular Auction proposals from now until 1 April 2026 (to schedule, contact Ilham at 085156872197). Investors can also access information related to the oil and gas potential of the 10 areas through the Data Room Access at LEMIGAS until 10 April 2026 (to schedule, contact Nita at 081296095629).