OIL BOOM: INDONESIA SURPASSES 2025 PRODUCTION GOAL FOR FIRST TIME SINCE 2008

By Mohd Iswandi Kasan Anuar

JAKARTA, Oct 26 (Bernama) -- Indonesia’s oil production has exceeded the government’s 2025 state budget target for the first time since 2008, reaching 607,000 barrels of oil per day (bopd) in October, Energy and Mineral Resources Minister Bahlil Lahadalia said.

Speaking at the Subroto Awards Ceremony on Friday, he said the 2025 target of 605,000 bopd, up from 480,000 in 2024, reflects regulatory improvements, including more flexible production-sharing contracts.

He praised local governments for surveying around 45,000 community-operated wells, which will be upgraded through small and medium-sized enterprises, cooperatives, and local government-owned companies to ensure proper management.

“The initiative allows communities to manage the wells, provided the sites are well-maintained and environmental protection and workplace safety are ensured,” he said, according to a ministry statement.

He noted that production-sharing contractors must also buy oil from these wells at 80 per cent of the Indonesian Crude Price (ICP), allowing communities to carry out their work without fear.

The ministry has set the ICP for September 2025 at US$66.81 per barrel, up US$0.73 from August, alongside rises in Brent crude futures and the OPEC Reference Basket, amid concerns over supply disruptions caused by geopolitical risks from the Russia-Ukraine conflict.

Indonesia, once a major oil exporter and member of OPEC, saw output peak at around 1.6 million barrels per day in the late 1990s before declining due to ageing fields.

The ministry now aims to restore production to one million bopd by 2030.

The Subroto Awards, named after Professor Subroto, minister from 1978 to 1988 and a respected role model in the sector, recognise central and local government entities, companies, and individuals for outstanding performance in the energy and mineral resources sector.

-- BERNAMA