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Opportunities for the Oil and Gas Industry in Indonesia

3 Minutes Read

June 2, 2024

Oil and Gas Industry in Indonesia

Oil and gas industry is one of the industrial sectors that has the most potential to be used as a profitable business and investment. Moreover, Indonesia itself has many oil and gas resources on various islands in Indonesia, such as Sumatra, the Java Sea, East Kalimantan and also the Natuna Islands. Then for natural gas, it is in East Kalimantan, North Sumatra, South Sumatra and also the Natuna Islands. Then Indonesia itself was listed as the world’s LNG pioneer so that Indonesia became a net gas exporter.

As we know, sorted oil and gas can be useful in everyday life, starting from raw materials for industry, materials for making household furniture, fuel for automotives, and can be used as ingredients for beauty and health products.

The State of the Oil and Gas Industry in Indonesia

Opportunities for the Oil and Gas Industry in Indonesia

Reporting from Antara.com, SKK Migas (Special Unit for the Implementation of Upstream Oil and Gas Activities) sees that Indonesia has great potential for the oil and gas business because it has many basins, both offshore and onshore, covering an area of ​​more than 460,000 square kilometers. It was recorded several years ago, to be precise in 2022, that the industry operating in the oil and gas sector will contribute around 700 trillion to the country. Then the oil and gas industry also has an indirect impact on the insurance industry, health, local vendors, and so on.

However, in the current era, transitional energy is starting to be intensified, so many people think that the state of the oil and gas industry will experience a shift and decline. This is because the use of oil and gas energy is considered not environmentally friendly. However, until now the presence of oil and gas is still a prima donna in people’s lives because oil and gas is the premier energy in Indonesia. Every year the need for oil and gas will continue to increase, both domestic and industrial needs.

The demand for energy in Indonesia itself continues to increase every year, as evidenced directly by the number of vehicles continuing to increase, as well as several factories starting to mushroom everywhere, plus the need for electricity. This means that oil and gas is still very much needed in various sectors, from automotive to even the health sector.

Opportunities for the Oil and Gas Industry in Indonesia

Oil and gas opportunities in Indonesia are also still very good because of the 128 producing basins, only 20 basins have opportunities that have not yet been produced and have the availability of 4 billion barrels of crude oil and 54 trillion cubic meters of gas. Reporting from esdm.go.id, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji said that 20 oil and gas basins have the potential to store large amounts of carbon. Of course, the potential for carbon storage in Indonesia is still very large.

Then, talking about oil and gas investment figures in Indonesia, it also has a fantastic value, as proven in the past few years, in 2021-2022, to be precise, it reached 12%, which is far from the world investment figure, which is only 6%. The existence of oil and gas will not run out in the near future because much of the potential for oil and gas basins is still unknown because it still needs proper studies, seismic and other research.

Behind all this, SKK Migas’ role is very influential in the sustainability of the oil and gas situation in Indonesia. The presence of SKK Migas is intended so that the distribution of oil and gas natural resources can provide benefits or profits for the country whose main goal is to prosper the lives of the people.

Oil and gas sales will then become a source of state income for the central and regional governments. PT Danan Wingsa Sakti (PT DWS) is also committed to synergizing with each other in seeking the progress of oil and gas in Indonesia and the manufacturing industry to run efficiently, apart from that it can also help the development of the nation’s economy, especially in the oil and gas industry.

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Opportunities for the Oil and Gas Industry in Indonesia

Oil and gas industry is one of the industrial sectors that has the most potential to be used as a profitable business and investment. Moreover, Indonesia itself has many oil and gas resources on various islands in Indonesia, such as Sumatra, the Java Sea, East Kalimantan and also the Natuna Islands. Then for natural gas, it is in East Kalimantan, North Sumatra, South Sumatra and also the Natuna Islands. Then Indonesia itself was listed as the world's LNG pioneer so that Indonesia became a net gas exporter.