Government and industry commit to strengthening energy amid global dynamics

Jakarta (ANTARA) - The government and the industrial sector are committed to strengthening national energy resilience amid continuously evolving global dynamics through the organisation of the Indonesian Petroleum Association Convention and Exhibition (IPA Convex) 2026. “This forum reaffirms the joint commitment to strengthening national energy resilience while maintaining the attractiveness of upstream oil and gas investments in Indonesia amid continuously evolving global dynamics,” said Executive Director of the Indonesian IPA, Marjolijn Wajong, in a statement in Jakarta on Tuesday. IPA Convex 2026 will be held from 20 to 22 May at the Indonesia Convention Exhibition (ICE) BSD City, Tangerang Regency, Banten. The IPA states that amid rising global geopolitical uncertainties, energy resilience has once again become a top priority for many countries, including Indonesia. This issue is the main focus of the leadership roundtable talk (LRT) session organised as one of the events of IPA Convex, which this year marks its 50th edition. IPA Convex also always serves as a forum bringing together government officials, industry leaders, and upstream oil and gas sector experts to discuss policy directions and strategies for strengthening national energy resilience. The forum will discuss energy resilience, which is now increasingly intertwined with funding aspects. Countries need to adopt supply source diversification strategies and strengthen cross-sector regional collaborations in energy to increase resilience. In that context, Indonesia is also required to compete in attracting upstream oil and gas investments amid rising geopolitical risks and tight global capital allocation discipline. Currently, the government has set one strategic policy to ensure the availability of energy supply for domestic needs. The government does not permit contractors to export crude oil that is their share to ensure that Indonesia’s domestic crude oil needs are met. Although it appears to alter the provisions in the production sharing contract (PSC) between the government and contractors, this policy is deemed quite important in reducing dependence on energy imports and maintaining national energy stability amid global volatility. As a representative of business players in the upstream oil and gas sector, the IPA has expressed its support for the government’s policy in holding back contractors’ share of crude oil exports to maintain national energy resilience. The IPA assesses that the policy can be implemented as long as no party in the PSC contract is disadvantaged, because all parties, both the government and oil and gas companies, equally ensure that domestic energy needs remain secure.