Strengthen National Oil and Gas Production, PHE Partners with Insurance Industry
Jakarta — Rising upstream oil and gas production activity across Indonesia presents significant opportunities for the insurance industry. The substantial investment value and energy assets, which reach into the billions of dollars, make insurance protection increasingly critical to sustain operational continuity.
PT Pertamina Hulu Energi (PHE), the upstream subholding of Pertamina, is currently a leading player in national oil and gas production. The company manages approximately 27% of operator work areas in Indonesia and contributes around 65% of domestic oil lifting and 35% of national gas lifting.
VP Financing & Treasury at PT Pertamina Hulu Energi Villia Sim outlined how PHE is implementing various strategic programmes to maintain national energy security whilst driving production increases. These efforts encompass field development, new exploration, enhanced oil recovery (EOR), and optimisation of existing assets through large-scale drilling, workover, and well intervention activities.
The company is also actively exploring new work areas with potential to generate significant additional oil and gas resources. This approach supports the strategy of offsetting natural production decline whilst strengthening domestic energy supply.
As these activities expand, the asset base managed by PHE continues to grow. This is reflected in the total capital expenditure PHE allocates annually for development, exploration, and oil and gas services, reaching billions of US dollars. Insured assets currently include onshore properties, offshore properties, and thousands of oil and gas wells.
“Oil and gas production is not merely about lifting volumes. It is about building a resilient, bankable, and trustworthy industry. Collaboration with the insurance sector is a fundamental part of PHE’s sustainability strategy,” Villia said in a statement on Tuesday, 10 March 2026.
According to Villia, under Indonesia’s upstream work contract framework, every contractor must maintain continuous insurance protection throughout operations. This is essential for ensuring industry stability and protecting national energy investments.
Looking ahead, PHE will pursue a dual growth strategy through optimisation of its core oil and gas business alongside development of low-carbon energy solutions such as carbon capture, storage and use (CCS/CCUS) and decarbonisation. With support from strategic partnerships, including from the insurance sector, the upstream oil and gas industry is expected to become increasingly resilient, efficient, and sustainable.
PHE will continue to invest in oil and gas upstream operations and management in accordance with Environmental, Social, and Governance (ESG) principles. The company remains committed to zero tolerance on bribery, ensuring fraud prevention and freedom from corruption, including through implementation of the Anti-Bribery Management System (ABMS), which is ISO 37001:2016 certified.