Jakarta. Indonesia is one of the fastest-growing economies globally, which also drives up energy demand. The country has been a net oil importer since 2003, owing to the high domestic demand for energy and declining national oil production.

If no effort is made to increase oil and gas production, Indonesia will become fully dependent on imported crude oil, a condition that poses a grave threat to energy security.

Indonesia’s crude import volume is forecast to expand in line with rising oil consumption to achieve the targeted energy mix of 2.2 million barrels of oil per day (mbopd) in 2030 and 3.9 million bopd in 2050, while national oil production currently stands at 705,000 barrels per day.

If no effort is made to increase oil and gas production, Indonesia will become fully dependent on imported crude oil, a condition that poses a grave threat to energy security.

“Indonesia has 128 oil and gas basins, of which only 20 basins have been producing.  It means that Indonesia still has a huge potential,” SKK Migas Chairman Dwi Soetjipto said. 

The upstream oil and gas industry has a joint vision to achieve targeted production of 1 million barrels of oil per day (bopd) and 12 billion standard cubic feet per day (bscfd) of gas in 2030, or a combined total of 3.2 million barrels of oil equivalent per day (boepd). If it meets this target, the upstream oil and gas sector will achieve the largest oil and gas production volume on record in Indonesia.

The four key strategies to achieving the 2030 targets are:  maintaining existing production, acceleration from resources to production, acceleration of Chemical Enhanced Oil Recovery (EOR) project, and spur exploration to discover new, large oil reserves and gas (road to giant discovery).

The Indonesia Oil & Gas Strategic Plan 4.0 (IOG 4.0) has been drafted to realize his vision. The IOG 4.0 framework contains 10 strategic pillars and enablers, 22 key programs to run the program, 80 targets to monitor development, and more than 200 action plans.

Achieving the 2030 oil and gas production targets of 1 million bopd and 12 bscfd would ensure Indonesia’s energy security and attract investors and improve the upstream sector's investment climate.

The upstream oil and gas regulator (SKK Migas) will elaborate and discuss its long-term vision at the upcoming 2020 International Convention on Indonesia Upstream Oil and Gas (IOG 2020) on 2-4 December 2020. Business communities and the general public are invited to share ideas and discover new opportunities in this free virtual event.