The investment will be used to achieve production targets of one million barrels per day (BOPD) and gas of 12 billion cubic feet per day (BSCFD) by 2030.
"We need aggressive activities and massive investment to achieve the target in 2030. We must also drill more than a thousand wells per year after 2025 and attract investment of more than US$20 billion per year," head of SKK Migas, Dwi Soetjipto, stated at the opening of the 2023 International Convention of Indonesian Upstream Oil and Gas (ICIUOG) in Bali on Wednesday.
Soetjipto highlighted that since 2020, Indonesian upstream oil and gas investment had shown an increase due to the government's support in a flexible fiscal system and through other forms of support that reduce investment risks.
"However, some areas still need improvement, such as in the legal and contractual aspects and giant reserve discovery," he stated.
Meanwhile, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, noted in his remarks via video conference that the government fully supports the initiative taken by SKK Migas.
"The Coordinating Ministry for Maritime Affairs and Investment has the same vision as SKK Migas in supporting investment in Indonesia," the minister remarked.
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He noted that the oil and gas sector plays an important and strategic role in all countries. Moreover, energy has always been a driving force for investment and new industries that will create jobs and encourage inclusive economic growth.
"I ask all parties to strengthen collaboration, cooperation, and innovation to support sustainable investment in Indonesia's upstream oil and gas sector in order to achieve the target of one million BOPD of petroleum and 12 BSCFD of gas by 2030," Pandjaitan remarked.
He also stated that the government is open to suggestions and inputs to ensure common interests.
Earlier, SKK Migas and the upstream oil and gas industry in 2020 had launched Indonesian Oil and Gas 4.0 (IOG 4.0) that is a strategic plan to achieve the 2030 target.
To ensure the progress in activities carried out and encourage the acceleration of activities, SKK Migas has, since 2020, held the annual ICIUOG event. This activity also supports cross-stakeholder collaboration to discuss achievements and improvements to the strategic plan.
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Translator: Benardy Ferdiansyah, Resinta S
Editor: Yuni Arisandy Sinaga
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