Indonesia Boosts Oil and Gas Block Offerings to Enhance Energy Security

Jakarta is actively seeking to bolster its energy security by accelerating oil and gas exploration, and production. The Indonesian government has significantly increased the number of oil and gas blocks offered to investors, aiming to attract crucial upstream investment and reduce reliance on imports.

Increasing Block Offerings

In November 2025, the Indonesian government announced it was offering 75 oil and gas blocks to investors . This represents a substantial increase from the five blocks awarded in April 2025 , demonstrating a clear push to expedite exploration activities.

Addressing the Supply-Demand Gap

Despite achieving its 2025 oil lifting target of 605,000 barrels per day , Indonesia faces a significant gap between domestic production and consumption. Daily fuel oil consumption averages 232,417 kiloliters, while domestic oil production only supplies 81,083 kiloliters per day . This deficit is largely attributed to the aging nature of Indonesia’s oil fields, many of which are in mature stages of operation.

Investment and Production Targets

The government is aiming to increase oil production to 1 million barrels per day and gas production to 12 billion cubic feet per day . Achieving these targets requires substantial upstream oil and gas investment. As of October 2025, realized investment totaled US$11.2 billion, falling short of the US$16.1 billion target for the year .

Government Priorities

The Indonesian government has prioritized energy security as a key policy objective . The increased offering of oil and gas blocks is a direct response to this priority, intended to attract investment and accelerate exploration.

Looking Ahead

The year 2026 will be critical in assessing the effectiveness of Indonesia’s efforts to meet its oil and gas production targets . The success of these initiatives will be crucial for ensuring the nation’s energy security and reducing its dependence on imports. Without significant new discoveries, national production is projected to decline by 16% to 20% annually .