ASIATODAY.ID, JAKARTA — Indonesia is stepping up efforts to strengthen investment in its upstream oil and gas sector by accelerating the deployment of artificial intelligence (AI) and advanced technologies through strategic collaboration with global energy technology leaders Halliburton, SLB, and Baker Hughes.
The initiative, led by SKK Migas, reflects the government’s broader strategy to improve upstream productivity, optimize hydrocarbon recovery, and create a more competitive environment for long-term energy investment while supporting national production and energy security goals.
As part of the strategy, SKK Migas convened a Technology Sharing Forum attended by Head of SKK Migas Djoko Siswanto, senior management, executives from approximately 20 Production Sharing Contract (PSC) contractors, and representatives of Halliburton, SLB, and Baker Hughes.
The forum examined the latest technologies for drilling, reservoir management, well optimization, enhanced oil recovery (EOR), and new field development. Participants also reviewed upstream production performance during the first half of 2026 and discussed production and lifting prospects for the remainder of the year.
Djoko said advanced technology has become increasingly critical as Indonesia develops more technically challenging reservoirs while seeking to maximize production from mature oil and gas fields.
“Indonesia’s oil and gas production targets can only be achieved through strong collaboration among all stakeholders. Technology adoption and innovation must become central pillars of our strategy to improve the performance of the upstream sector,” Djoko said.
He said SKK Migas continues to encourage PSC contractors to adopt proven technologies that improve operational efficiency, increase production, and enhance the competitiveness of Indonesia’s upstream industry.
According to Djoko, the participation of Halliburton, SLB, and Baker Hughes demonstrates the increasingly important role of global technology providers in supporting the modernization of Indonesia’s upstream oil and gas sector.
“The synergy between SKK Migas, PSC contractors, and global technology providers is essential for accelerating national oil and gas lifting while strengthening Indonesia’s energy security,” he said.
SKK Migas expects the collaboration to speed up the deployment of advanced technologies across upstream operations, enabling operators to improve productivity, reduce operational complexity, and support future field developments.
AI Innovation Reinforces Indonesia’s Investment Ecosystem
Complementing its collaboration with global technology providers, SKK Migas is also accelerating digital transformation through the IOC Digital Hackathon AI/ML Hulu Migas 2026, which attracted around 700 participants from PSC contractors and universities across Indonesia—more than three times the participation recorded during the 2023–2025 editions.
The Artificial Intelligence (AI) and Machine Learning (ML) initiative has evolved into a collaborative innovation platform linking industry and academia to develop practical digital solutions that improve operational efficiency, enhance production performance, optimize asset management, and enable faster data-driven decision-making across the upstream value chain.
This year’s competition introduced a new Subsurface category alongside the existing Surface category, expanding AI applications from exploration and reservoir evaluation to production optimization.
An evaluation of the submitted projects indicates that implementing the AI solutions and proof-of-concept initiatives could generate an estimated IDR4.67 trillion (approximately US$287 million) in economic value through increased production, improved operational efficiency, streamlined business processes, and stronger asset performance.
Together, the technology partnership and the nationwide AI initiative demonstrate Indonesia’s commitment to modernizing its upstream oil and gas industry through innovation.
By combining global expertise, digital capabilities, and closer collaboration between government, operators, academia, and technology providers, SKK Migas is laying the foundation for a more productive, competitive, and investment-ready upstream sector capable of supporting sustainable energy growth over the long term. (AT Network)
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