The government officially launched on Friday tenders for the exploration of 21 oil and gas blocks across the country in its efforts to increase the country'€™s oil and gas production, which has seen a decline due to depleting reserves.

The tenders were announced by Edy Hermantoro, the director general for oil and gas at the Energy and Mineral Resources Ministry, during the closing ceremony of the 38th Indonesian Petroleum Association Convention and Exhibition (IPA Convex) in Jakarta on Friday.

Of the total 21 blocks, 13 are conventional blocks and eight are unconventional blocks.

Edy said his office remained optimistic that the tenders would receive a good response from foreign and local oil and gas companies, even though a number of analysts have said that many companies are reluctant to launch explorations for oil and gas in Indonesia due to the legal uncertainty.

A number of oil and gas blocks that were put out to tender in the past attracted no bidders.

'€œThe appetite remains good because of our growing economy. Economic growth needs energy, and this means opportunities for them,'€ Edy said.

Indonesia, a former member of the Organization of the Petroleum Exporting Countries (OPEC), has seen declining oil production due to a combination of aging fields and explorations that discovered only small amounts of hydrocarbon reserves. Indonesia has been forced to import fuel in order to meet its fuel needs, causing a major strain on the state budget.

Last February, the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) and oil and gas companies awarded seven contracts for the exploration of several oil and gas working areas or blocks.

Energy and Mineral Resources Minister Jero Wacik said his ministry needed to offer at least 10 oil and gas blocks a year in order to find more gas and hydrocarbon reserves.

The oil and gas industry is known as a capital-intensive and high-risk industry; moreover, results of all the money invested and efforts undertaken may take years to materialize. Indonesia has begun to focus its oil and gas explorations in seas in the eastern half of the country, where challenges are greater due to the physical conditions and poor infrastructure.

The government has promised to settle unresolved issues in the oil and gas sector, including expediting the issuance of permits.

'€œWe still have a lot of work to do. No matter who ends up in the next administration, the challenge will remain the same: how to meet Indonesia'€™s energy needs by increasing production,'€ Deputy Energy and Mineral Resources Minister Susilo Siswoutomo said in his speech at the close of the IPA Convex.