Energy and Mineral Resources Minister Arifin Tasrif has stated that the government continues to offer potential oil and gas blocks equipped with incentives to stimulate business actors who want to invest in the oil and gas sector. Examples of incentives offered include tax facilities and more attractive terms and conditions.

He also revealed that the government has entered the final stage of discussing the revision of Government Regulations No. 27/2017 and 53/2017, which aim to improve the economics of oil and gas projects.

Meanwhile, with the shift in the government’s prioritization to clean energy, the upstream oil and gas industry is also required to follow. Arifin recognizes that the world is facing a new trend in adapting to the use of clean and renewable energy.

For Indonesia, natural gas can be a solution in providing clean energy to achieve the net-zero emissions target. Apart from that, in order to answer the challenges of using clean energy in the future, upstream oil and gas business actors must implement strategies to reduce emissions, through the application of technology such as carbon capture and storage (CCS) and carbon capture and utilization and storage (CCUS).

In order to support the development of the aforementioned technology, the government has also issued two regulations. There are currently 15 CCS/CCUS projects with a total storage potential of up to 500 gigatons of carbon dioxide, cementing Indonesia’s place as a pioneer and leader in implementing CCS.

Arifin has also reiterated the importance of collaboration between all stakeholders to be able to achieve success. For this reason, IPA Convex 2024 activities are expected to become a bridge for collaboration that is able to maximize the potential of oil and gas resources, which are believed still to be large.

"It is very important to increase collaboration and partnerships to face challenges in the upstream oil and gas industry, namely meeting energy needs while reducing emissions. I invite everyone to actively contribute to increasing investment in oil and gas reserves and realizing emissions-reduction targets," said Arifin.

Meanwhile, Yuzaini bin Md Yusof, president of the Indonesian Petroleum Association (IPA), said that the energy transition will continue. However, in the period of waiting for the readiness of new and renewable energy (EBT), the upstream oil and gas sector will play an important role while continuing to transform to reduce carbon emissions.

"Gas will play a crucial role in various parts of the Indonesian economy," said Yuzaini. Efforts to cut greenhouse gas emissions must be intensified in production operations, "even though this raises significant technical and commercial challenges and requires special attention.”

Yuzaini expressed his hope that the IPA Convention and Exhibition can produce constructive discussions regarding the application of CCS technology and various production exploration activities to achieve the goal of realizing Indonesia's energy security.

At the opening of IPA Convex, the government announced the offer for phase I oil and gas working areas, which was announced by Dadan Kusdiana, acting director general of oil and gas at the Energy and Mineral Resources Ministry. There were also auctions for five oil and gas working areas across Sumatra, Kalimantan and Sulawesi islands, as well as the Andaman region.

In collaboration with Dyandra Ponselndo, IPA Convex 2024 is fully supported by sponsors from national and international oil and gas companies such as: PT Pertamina Hulu Energi as Titanium sponsor; bp Indonesia, Energi Mega Persada Group, ExxonMobil Indonesia, MedcoEnergi, Mubadala Energy and Wood Mackenzie as Platinum sponsors; ADES, PETRONAS Indonesia, and SLB as Gold sponsors; as well as COSL, Harbor Energy, INPEX, and SINOPEC as Silver sponsors.

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