Minister Bahlil intensifies efforts to raise domestic oil lifting

Jakarta (ANTARA) - Minister of Energy and Mineral Resources Bahlil Lahadalia said the government is pursuing efforts to increase domestic crude oil production, or lifting, to reduce imports.

"There are three approaches we will take to increase oil lifting," he noted in his remarks at the INDEF 2026 Mid-Year Review National Seminar in Jakarta on Thursday.

Bahlil explained that Indonesia's crude oil lifting, or production, peaked in 1996-1997, with production reaching over 1.6 million barrels per day.

While demand was only 500,000 barrels per day, Indonesia exported 1.1 million barrels of crude oil per day.

However, Bahlil said the trend has since reversed, with crude oil lifting in 2025 projected at 605,000–610,000 barrels per day, compared with demand of 1.6 million barrels per day.

To meet crude oil consumption needs, the minister explained that the country needs to import 1.1 million barrels of oil per day, since existing oil wells are aging with declining productivity.

"Our total number of functioning wells, controlled by Production Sharing Contractors (K3S), is approximately 39,000 to 40,000. And we have approximately 16,000 to 17,000 idle wells. So, we have around 18,000 to 19,000 productive wells," he explained.

Given these conditions, his office is striving to increase oil lifting through several means, including the use of technology and the revival of stalled Plan of Development (PoD).

To boost production, exploration activities are also being intensified to increase crude oil reserves.

He added that exploration is unavoidable, noting that around 120 potential wells are currently being offered through exploration tenders.

In addition, the Minister of Energy and Mineral Resources Regulation Number 14 of 2025 allows regionally-owned enterprises (BUMD), cooperatives, or micro, small, and medium enterprises (MSMEs) to manage community oil wells and sell the output to the state-owned oil firm, Pertamina, or K3S at 80 percent of the ICP (Indonesian Crude Price).

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Translator: Khaerul Izan, Resinta Sulistiyandari

Editor: Azis Kurmala

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