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🇮🇩 Indonesia /Economy & Trade

Indonesia Sets 2027 Oil Lifting Target at 610,000 Barrels Daily

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Indonesia's President Prabowo Subianto has set an oil lifting target of 610,000 barrels per day for 2027, maintaining the same goal as the previous year.
  • Gas lifting is targeted at 954,000 barrels of oil equivalent per day, a decrease from 2026.
  • An energy observer warns that Indonesia will remain dependent on oil imports due to insufficient reserves and unattractive upstream investment, despite a projected increase in the Indonesian Crude Price to $75 per barrel.

President Prabowo Subianto has set Indonesia's oil lifting target at 610,000 barrels per day for 2027, a figure consistent with the previous year's State Revenue and Expenditure Budget Draft (RAPBN). The government also aims for gas lifting of 954,000 barrels of oil equivalent per day (boepd), a reduction from the 2026 target of 984,000 boepd.

"We are targeting oil lifting of 610,000 barrels per day and gas lifting of 954,000 barrels of oil equivalent per day," Prabowo stated during the introduction to the Financial Memorandum and the 2027 RAPBN. The assumed Indonesian Crude Price (ICP) for 2027 is set at $75 per barrel, an increase from the $70 per barrel assumed in the 2026 budget.

We are targeting oil lifting of 610,000 barrels per day and gas lifting of 954,000 barrels of oil equivalent per day.

— Prabowo SubiantoPresident Prabowo Subianto delivering the government's introduction to the Financial Memorandum and the 2027 RAPBN.

However, energy observer Fahmy Radhi of Gadjah Mada University expressed concern that Indonesia will continue to rely on oil imports. He believes the current state of oil and gas reserves and the upstream industry structure do not support fossil-based energy independence. With domestic fuel consumption around 1.6 million barrels per day and domestic oil lifting only reaching approximately 600,000-605,000 barrels per day, Indonesia faces a significant gap that necessitates importing about 1 million barrels of crude oil and fuel daily.

Radhi explained that increasing oil lifting hinges on discovering substantial new reserves or reducing oil dependence through renewable energy development, such as biofuels. He noted that while potential oil and gas reserves exist, investment in the upstream sector remains unattractive. Many reserves are offshore, incurring high operational costs, and producing fields are experiencing natural declines. "This downward trend is inevitable. Self-sufficiency from fossil fuels will be difficult without the discovery of large reserves," he stated.

This downward trend is inevitable. Self-sufficiency from fossil fuels will be difficult without the discovery of large reserves.

— Fahmy RadhiGadjah Mada University energy observer commenting on Indonesia's oil and gas reserves and production.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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