ASIATODAY.ID, MAKASSAR – The Indonesian government has unveiled one of its largest upstream energy initiatives in recent years, offering 110 oil and gas blocks to global investors as part of an accelerated push toward national energy self-sufficiency.
The announcement was made by Energy and Mineral Resources Minister Bahlil Lahadalia during the 18th Plenary Session of the Indonesian Young Entrepreneurs Association (HIPMI) in Makassar, South Sulawesi on February 15, 2026.
He stressed that energy independence cannot be achieved through administrative targets alone, but requires bold structural breakthroughs and strategic investment.
“We cannot dream of achieving energy self-sufficiency without real breakthroughs. Energy importers benefit from our inability to strengthen domestic production,” Bahlil stated.
110 Blocks: A Major Investment Signal
The planned tender of 110 oil and gas blocks represents one of the most significant upstream offerings in recent years.
The government expects the move to boost exploration, increase production capacity, and reverse the long-standing decline in national oil and gas lifting.
In addition to new exploration areas, the Ministry of Energy and Mineral Resources will accelerate the development of fields already included in their Plans of Development (PODs), aiming to fast-track production gains in the short to medium term.
Reviving Aging Wells Through Technology
Bahlil also highlighted structural challenges in Indonesia’s upstream sector. Of approximately 39,000–40,000 oil wells nationwide, only around 17,000–18,000 are currently operational. The remainder are idle, largely due to aging infrastructure and technological limitations.
The government is therefore encouraging technological intervention and strategic partnerships with private and international investors to reactivate mature wells and optimize untapped reserves.
Downstream Strengthening: RDMP Balikpapan
On the downstream side, Indonesia is expanding domestic refining capacity through the Refinery Development Master Plan Balikpapan, inaugurated by President Prabowo Subianto on January 12, 2026.
The upgraded refinery is projected to produce an additional 5 million kiloliters of gasoline and 3.9 million kiloliters of diesel annually.
Combined with the nationwide B40 biodiesel mandate, the government aims to eliminate diesel imports in 2026—marking a historic milestone for Indonesia’s energy sector.
Energy Self-Sufficiency as a Strategic Pillar
Energy self-reliance forms a core component of President Prabowo’s broader national development agenda, focused on strengthening domestic resource utilization, expanding refining capacity, and reducing dependency on foreign energy supplies.
By offering 110 oil and gas blocks to global investors, Indonesia is sending a clear message: the country is open for business and determined to transform its energy sector into a resilient, investment-driven engine of national growth. (AT Network)
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