ASIATODAY.ID, JAKARTA — Indonesia has set an ambitious target to lift 610,000 barrels of oil per day (bpd) in 2026, as the global energy crisis continues to reshape economic and geopolitical priorities worldwide.
The target is outlined in the 2026 Draft State Budget (RAPBN) and was presented by Minister of Energy and Mineral Resources Bahlil Lahadalia during a working meeting with House of Representatives Commission XII on Thursday, January 22, 2026.
Persistent geopolitical tensions — including ongoing conflicts in the Middle East, the Russia–Ukraine war, and continued volatility in global oil markets — have pushed many countries to prioritize energy security.
For Indonesia, the 2026 oil lifting target is not merely a production figure but a strategic buffer to protect fiscal stability and reduce exposure to global supply shocks.
Domestic Challenges Under Global Pressure
The 610,000 bpd target comes amid mounting domestic challenges. Indonesia’s oil sector continues to face natural production decline from aging fields, compounded by operational disruptions.
Early in 2026, a pipeline leak in Sumatra disrupted operations at Rokan Block in Riau, one of Indonesia’s largest oil-producing assets.
“At the beginning of this year, we experienced a minor incident in Sumatra. A pipeline leak caused a potential loss of around 2 million barrels of oil,” Bahlil told lawmakers.
In the current global energy landscape, such disruptions risk increasing Indonesia’s dependence on oil imports, potentially widening the trade deficit and placing additional pressure on the state budget.
Strategies to Secure Energy Supply
Despite these challenges, the government remains confident the target can be achieved through a multi-pronged strategy. A key pillar is the legalization and reactivation of community-owned oil wells, long operating in a regulatory grey area.
The Ministry of Energy has accelerated permits for more than 40,000 community oil wells across several producing regions, allowing their output to be officially counted toward national lifting.
“Permits have already been issued in Jambi and South Sumatra, and we are now fast-tracking the process in Central Java,” Bahlil said.
The second strategy focuses on technological optimization, particularly the deployment of Enhanced Oil Recovery (EOR) at major assets such as Rokan Block, operated by Pertamina, and Banyu Urip Field, run by ExxonMobil. These technologies are seen as critical tools to slow natural decline and sustain output amid strong global demand.
A third measure involves cutting bureaucratic delays by accelerating production from projects whose Plans of Development (PODs) have already been approved.
“We have called in all production-sharing contractors to ensure approved PODs move quickly into production,” Bahlil added.
Over 100 Oil and Gas Blocks to Be Offered
As part of a medium-term response to global uncertainty, the government plans to offer more than 100 oil and gas working areas, exceeding the previous target of 75 blocks.
The move aligns with President Prabowo Subianto’s directive to intensify upstream exploration as a safeguard against increasingly fragmented global energy markets.
The policy reflects a broader shift among resource-rich nations toward securing domestic supply amid rising energy nationalism worldwide.
2025 Performance Fuels Optimism
Indonesia’s confidence is underpinned by its 2025 performance. National oil lifting reached 605,300 bpd, slightly exceeding the state budget target of 605,000 bpd.
“This means the target was achieved, even with a small surplus in oil lifting,” Bahlil said.
As the global energy crisis continues to test supply chains and national budgets, Indonesia’s 2026 oil lifting target represents a strategic bet on energy resilience, aimed at curbing imports, stabilizing the economy, and strengthening national energy sovereignty. (AT Network)
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