Hudi D. Suryodipuro, Head of the Program and Communication Division at SKK Migas, highlighted the significant impact of Indonesia's upstream oil and gas industry. Over the past two decades, the sector has been the second-largest contributor to state revenue, following taxes, with a total contribution of IDR 5,045 trillion. In 2023, investment in the upstream oil and gas industry reached USD 13.7 billion (IDR 206 trillion), marking a 13% increase from 2022 and surpassing the long-term plan target by 5%. Hudi noted that Indonesia has maintained a Reserve Replacement Ratio (RRR) above 100% for six consecutive years, a testament to successful exploration efforts. Major projects like the Jangkrik Field, Jambaran Tiung Biru (JTB), and Tangguh Train 3 have been completed, further bolstering the industry. Since 2012, domestic gas supply has exceeded exports, supported by a 58% Domestic Content Level (TKDN) and the creation of 150,000 jobs through community empowerment programs.
In 2024, the industry secured a PPM budget agreement of USD 35.38 million (IDR 530 billion), a 127% increase from 2023. Recent exploration discoveries in Geng North, Layaran, and Tangkulo have positioned Indonesia at the forefront of Southeast Asian exploration for two years. Despite these successes, challenges remain. Oil production in 2024 is expected to fall short by 130,000 BOPD, and gas production is projected to be 1,402 MMSCFD below target. SKK Migas aims to increase investment to USD 16.1 billion (IDR 242 trillion) and plans a significant expansion in drilling activities, targeting 932 wells, a 388% increase from 2020. By 2029, SKK Migas plans to execute 141 projects with a total investment of USD 36.25 billion (IDR 543 trillion).
