Tired of Imports, Government Unveils Three Strategies to Boost Indonesia's Oil Production

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources Bahlil Lahadalia has stated that Indonesia’s daily oil consumption can reach 1.5 to 1.6 million barrels. This figure is substantial considering the country’s oil production capacity (lifting) is only 610,000 barrels per day, making imports a necessity. “Our imports are 1 million barrels per day. We buy from the Middle East, and before the geopolitical tensions, 20-25% of the crude we purchased came from there,” he explained at the CNBC Indonesia Energy Forum in Jakarta on Thursday (25/6/2026). In light of this, the government is undertaking several efforts to increase domestic oil production. One approach is optimisation through the strengthening of technology, such as fracking, Enhanced Oil Recovery (EOR), and horizontal drilling, to boost production in existing fields. Additionally, the government will reactivate idle or depleted wells. According to Bahlil, there are currently 7,345 idle wells with hydrocarbon potential, of which 792 were reactivated in 2025. A further 5,771 wells have the potential to be developed through cooperation schemes to encourage additional oil production. “We must accelerate construction so that production can commence. This is a method that must be implemented, half in Java and half in Papua,” he stated. Finally, Bahlil continued, the government will conduct exploration of oil and gas potential in eastern Indonesia. The government will push for acceleration through cooperation mechanisms, more attractive incentives, and the offering of 118 potential oil and gas blocks. “Thirdly, we must conduct auctions,” he concluded.