Energy Minister to Evaluate Stalled Oil and Gas Projects in Indonesia

TEMPO.CO, Jakarta - Bahlil Lahadalia, the Minister of Energy and Mineral Resources (ESDM), has pointed out that several oil and gas development areas, though approved, are not being used. As a result, he noted, Indonesia's potential for oil and gas production is not being fully achieved.

"There are still many areas around the oil and gas blocks in Natuna that can be developed. Despite having been granted permits, they have not been operated for a long time," Bahlil said in a written statement on Tuesday, May 20, 2025.

He noted that optimizing these oil and gas blocks, especially in the Natuna region, could increase production potential by approximately 5,000 to 7,000 barrels per day. In response to this issue, Bahlil reported to President Prabowo Subianto for evaluation. "We have reported to Bapak President," he confirmed.

Furthermore, Bahlil explained that his ministry has prepared rules for these unused oil and gas blocks. The Ministry of Energy and Mineral Resources has released Ministerial Decree No. 110.K/MG.01/MEM.M/2024. This rule provides guidelines for how unused oil and gas working areas should be returned.

According to Bahlil, this new regulation sets clear standards for what counts as an "inactive" working area. First, oil fields that have not been working for two years in a row are considered inactive. Second, any development plans (POD) after the first one that has not been carried out within two years also fall under this rule. Lastly, oil and gas locations where new discoveries have been made but no follow-up has happened for three years will also be seen as inactive.

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