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Indonesia falls behind oil and gas investment target
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The Oyong oil and gas rig is in operation in the Sampang Block, located in the Madura Strait off the coast of East Java, in this picture from 2020. (SKK Migas/SKK Migas)
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ndonesia’s oil and gas investment in the first half of the year amounted to US$5.7 billion, just 36.67 percent of this year’s $15.54 billion target, according to the Upstream Oil and Gas Regulatory Task Force (SKK Migas).
Oil and gas investment in the January-June period was up 21 percent year-on-year (yoy) on the back of an upward trend in global upstream oil and gas investment, according to SKK Migas head Dwi Soetjipto.
SKK Migas deputy head Nanang Abdul Manaz blamed postponed well-drilling and other project delays as well as safety-related disruption for the fact that oil and gas investment was below target at the half-year mark.
“But, considering current calculations and forecasts, we hope investment will be close to the targeted amount by the end of the year,” Nanang told a press conference on Tuesday.
He added that the government had been willing to improve the investment climate as the country struggled to meet rising energy demand.
Read also: RI urgently needs to boost oil, gas investment amid ambitious 2030 targets
Oil consumption in Southeast Asia’s largest economy is forecast to more than double to 3.97 million barrels of oil per day (bopd) by 2050, according to SKK Migas data, while natural gas consumption is expected to more than quadruple to 26,000 million standard cubic feet per day (mmscfd).
