Back toour markets

Indonesia's Energy Industry


in figures

Oil reserves2.4 billion barrels

Oil production692,000 bopd

Gas reserves1.3 tcm

Gas production59.3 bcm

Eastern potential

Indonesia’s oil and gas industry is a key element in the country’s historic economic development. First oil was discovered in North Sumatra in 1883, which led to the establishment of super-major Royal Dutch Shell in 1890. Production of hydrocarbons continues to be a crucial part of the economy and is increasing in significance as reserves are gradually lowered and local consumption rises. Despite being Southeast Asia’s second largest economy, the government has struggled with making its upstream plays attractive to foreign investors in the modern era due to what are seen as protectionist policies and a history of corruption.

The OPEC member’s upstream and natural gas activities are overseen by SKK Migas. The task force has initiated an ambitious roadmap to shake up the industry and recoup its losses, attract investment and bring the industry back to its former peak in the 1990s. NOC Pertamina is the dominant player in the upstream sector, and has been joined by international players such as China National Offshore Oil Corporation, Total E&P Indonesia, ConocoPhillips, BP Tangguh and ExxonMobil Indonesia. The island nation’s prospective gas plays are mainly found on offshore basins that are not associated with its crude production. E&P operations on its coal bed methane and shale gas are being pushed by the state as a key economic lifeline for the nation.

Indonesia is a large player in the global LNG export market. In the 1990’s it accounted for one-third of international trade of the resource. However it has lost it market dominance due to a rise in LNG exports from competitors such as Qatar, Australia and the US. The country remains a significant regional supplier of LNG, with Japan, South Korea and China among its top buyers.

The Asian nation is also seeking investment in its downstream and midstream sectors. Indonesia boasts a large array of refineries. However, the country’s refining capacities are inefficient for its demand. Indonesia relies on imports to fulfil its petroleum usage. Pertamina owns and operates most of the country’s refining capacity. The country has no international pipelines for petroleum trade and maritime transport remains a crucial component of its energy value chain. State-run Perusahaan Gas Negara manages more than 90% of the country’s midstream infrastructure.

UAE’s Mubadala Energy makes major gas find off Indonesia
Indonesia - May 14, 2024

Mubadala Energy has made a major ultra-deepwater gas find off Indonesia.

Eni may spin off new satellites for high-investment oil projects
Multinational - May 13, 2024

Eni is considering spinning off new satellite companies for high-investment oil and gas projects.

Indonesia’s largest power plant shifts from coal towards biomass
Indonesia - April 08, 2024

Indonesia's largest power plant is ramping up its deliveries of biomass fuel as part of a bid to shift to more sustainable…

Fugro wins marine survey contract at Indonesia’s Abadi LNG
Indonesia - March 06, 2024

Fugro has won a contract to provide marine surveying at Inpex's 9.5-million-tpy Abadi LNG project in Indonesia.


Indonesia maps

Indonesia’s Exploration and Production Licence Areas 2020

Eni concludes $4.9-bln Neptune purchase
Italy - February 01, 2024

Eni has completed its acquisition of Neptune Energy’s oil and gas assets for USD 4.9 billion.

- December 12, 2023

Sameer Mohammed, CEO and managing director of Ocean Oilfield Integrated Solutions, talks to The Energy Year about how the…

Expansion outside the energy sphere TEY_post_Osman_Ibrahim
Saudi Arabia - May 29, 2023

Osman Ibrahim, vice-chairman and group CEO of Rawabi Holding, talks to The Energy Year about the company’s expansion and diversification strategy and the net-zero…




  • Do you have a question for The Energy Year about oil and gas?
  • If we know, we’ll tell you.
  • If not, we’ll ask the experts in the field.