Indonesia Maintains 2027 Oil Lifting Target at 610,000 Barrels per Day
The oil lifting target in the 2027 Draft State Budget is stagnant, while gas lifting is down.
President Prabowo Subianto has set an ambitious oil production target of 610,000 barrels per day for 2027, as outlined in the 2027 State Revenue and Expenditure Budget Draft (RAPBN). This target mirrors the figure set for 2026. Gas production is expected to reach 954,000 barrels of oil equivalent per day, a slight decrease from this year's target of 984,000 boepd. The government also assumes a crude oil price of US$75 per barrel in 2027, up from the previous year's estimate of US$70 per barrel.
Gadjah Mada University energy observer Fahmy Radhi expressed skepticism about Indonesia's ability to achieve energy independence solely through oil and gas production. He noted that current oil and gas reserves, coupled with the structure of the upstream industry, do not support self-sufficiency. Indonesia's fuel consumption stands at approximately 1.6 million barrels per day, while domestic production ranges between 600,000 and 605,000 barrels per day.
This results in a yearly import requirement of about 1 million barrels of crude oil and fuel to meet domestic demand.
To increase oil production, Fahmy suggests that Indonesia must discover significant new reserves or focus on reducing dependence on oil through the development of renewable energy sources, such as biofuels. Despite still possessing oil and gas potential, he pointed out that investment in the upstream sector has not been attractive.
Most reserves are offshore, leading to high operational costs, and production fields are experiencing natural depletion, a trend that cannot be reversed. With no large new reserves expected, achieving self-sufficiency in fossil fuels appears challenging.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
