TANGERANG – Various improvements made by the government, together with upstream oil and gas industry players, are beginning to indicate positive results. Investment interest in oil and gas exploration in Indonesia continues to increase, in line with the discovery of large oil and gas reserves in recent years that have revived optimism in the industry.
In a plenary session titled "Enhancing Indonesia's Long-Term Competitiveness in the Global Energy Investment Scene" at the IPA Convention & Exhibition (IPA Convex) 2025 in ICE BSD City, Tangerang (20/5), leaders of global oil and gas companies expressed their commitment to Indonesia as a key exploration investment destination.
Roberto Daniele, Managing Director of ENI Muara Bakau, emphasized that Indonesia is currently ENI’s top priority for oil and gas exploration. “We can say that Indonesia occupies the top position in our global exploration plan,” said Roberto. ENI is noted as one of the companies with the largest oil and gas discoveries, including the major find at Geng North, one of the world's largest discoveries in recent years. To accelerate development, ENI will carry out three additional drillings this year.
Adnan Bu Fateem, Chief Operating Officer of Mubadala Energy, stated that Indonesia is a key strategic market in the company’s global portfolio. “We have been operating in Indonesia for 12 years, and our reserve discoveries align with the company’s strategic direction moving forward,” he explained. Adnan emphasized that accelerating gas project development is crucial to support national energy needs.
Kathy Wu, Regional President Asia Pacific G&LCE of bp, stated that Indonesia has significant oil and gas potential and is an important part of bp’s global portfolio. She affirmed that bp is committed to long-term investment in Indonesia. “Exploration requires strong government support. The government has made many improvements, but what is crucial are contract guarantees, fiscal stability, and certainty in investment returns, especially for complex projects. The right incentives will greatly support the project’s sustainability,” said Kathy.
Currently, bp Indonesia is the largest gas contributor in Indonesia, with a production volume of around 600 MMscfd, processed at the Tangguh LNG plant—the second-largest LNG facility in Indonesia.
Yuzaini Md Yusof, President Director & Country Chairman of PETRONAS Indonesia, shared that based on internal reviews with international consultants, Indonesia’s position as an oil and gas investment destination continues to strengthen, especially in terms of fiscal terms and support in frontier exploration areas. Having operated in Indonesia for two decades, PETRONAS has seen many improvements in regulations and fiscal schemes. “We are optimistic that Indonesia will continue to be an important part of our portfolio. Legal certainty and long-term contracts of 30–35 years are key factors in determining investment sustainability,” said Yuzaini.
From the national perspective, Awang Lazuardi, Director of Production and Development of Pertamina Hulu Energi (PHE), said that stakeholder support, particularly in streamlining the permitting process, has a significant impact on the economic feasibility of oil and gas projects. “There is room for improvement, especially in the permitting system. We highly expect the government's support in creating a more simplified and efficient process, as time sensitivity greatly impacts project economics,” he explained.
In line with this, Wang Lei, President Director of PetroChina International Jabung Ltd, emphasized that Indonesia’s oil and gas potential is still enormous and can be sustainably utilized with the right technology.
“The simplification of the administrative system, including accelerating discussion of the Plan of Development (POD) and reducing the number of permits, will greatly support the development of oil and gas blocks,” he said.
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For more information, please contact:
Posman Sianturi – IPA Communication Officer
posman.sianturi@ipa.or.id
