Indonesian Political, Business & Finance News

Indonesia's Gas Production Forecast to Surge 150% in Five Years

| Source: CNBC Translated from Indonesian | Energy
Indonesia's Gas Production Forecast to Surge 150% in Five Years
Image: CNBC

Minister of Energy and Mineral Resources Bahlil Lahadalia has projected that Indonesia will experience a 150% surge in natural gas production. This outlook is based on various oil and gas block development projects expected to commence operations within the next five years. Bahlil cited major new discoveries in East Kalimantan and the progress of the Masela Block, stating that this abundant gas potential will serve as capital for Indonesia to strengthen downstream industries while supporting the clean energy transition. “In the next five years, our gas production will increase by 150% compared to our current lifting. Currently, we are at approximately almost 1 million for gas,” he said at the Global Hydrogen Ecosystem Summit and Exhibition 2026 in Jakarta. One of the main contributors to this production increase originates from a block in East Kalimantan managed by the Italian energy company ENI in collaboration with Malaysian energy company Petronas. The project is targeted to begin production in 2029. “The block we recently discovered in East Kalimantan, managed by ENI in cooperation with Petronas, will produce around 3,000 million standard cubic feet per day by 2029, which is substantial, 7 TCF,” he explained. Furthermore, the government has conducted a groundbreaking ceremony for the Masela Block. This project is expected to further boost Indonesia’s gas production alongside other newly discovered blocks. Bahlil stressed that optimal utilisation of gas is expected to maintain national energy security amidst uncertain global geopolitical dynamics. “The country’s alignment will be determined firstly by our continued use of clean energy, secondly by energy efficiency, and thirdly by energy that can be produced within the Unitary State of the Republic of Indonesia,” he asserted.

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