The Upstream Oil and Gas Regulatory Task Force (SKK Migas) signed a Production Sharing Contract (PSC) for two working areas in Sumatra and Sulawesi under a Cost Recovery scheme during the Indonesia Exploration Forum on October 14, 2024. Director General Dadan Kusdiana emphasized the government’s commitment to attracting investment in the upstream sector, with over 60 new oil and gas blocks prepared for the next five years. SKK Migas Head Dwi Soejipto noted the significant potential for reserve discoveries, aiming for oil production of 1 million barrels per day and gas of 12 billion cubic feet per day.
Several ministers from President Joko “Jokowi” Widodo’s administration are expected to retain their roles under President-elect Prabowo Subianto. On October 14, 2024, at least seven members of the Onward Indonesia Coalition met with Prabowo to discuss potential cabinet positions. Gerindra Party Secretary-General Ahmad Muzani noted that some current ministers may be reappointed due to their competence. Among those meeting with Prabowo were Minister of State Secretary Pratikno and Minister of Energy Bahlil Lahadalia, who hinted at continuing in a similar role.
Coal and electric vehicle company PT TBS Energi Utama Tbk (TOBA) – which 10% of shares are owned by Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan – has allocated between US$ 50 million and US$ 60 million of capital expenditure (Capex) for the year 2023. The Capex would be allocated for the development of the new EVs and the renewable energy with its subsidiaries.
PT Bayan Resources Tbk. (BYAN) has absorbed capital expenditure (Capex) of US$ 166.2 million on the construction of a coal transport road, overland conveyor and a barge loading facility in Muara Pahu, East Kalimantan. The company seeks to increase its 2023 coal production targets to over 45 million tons, an increase compared to 2022 which was below 40 million tons.
Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia announced that investment realization from January to September 2022 has reached IDR 892.4 trillion – or 74.4% of the target – both foreign and direct investments. He was upbeat that his ministry could reach a targeted investment of IDR 1,200 trillion for the year 2022.
PT Galva Technologies Tbk (GLVA) has planned to allocate IDR 80 billion of Capex for 2023 to strengthen the company’s recurring income through managed services business model.
