Indonesia is once again emerging as a top destination for global oil and gas (O&G) exploration investment, as recent large-scale hydrocarbon discoveries and regulatory improvements restore investor confidence in the country’s upstream sector.
At the IPA Convention and Exhibition (IPA Convex) 2025, held at ICE BSD City in Tangerang on May 20, 2025, leaders of major international energy companies reaffirmed their commitment to Indonesia during a plenary session titled “Enhancing Indonesia’s Long-Term Competitiveness in the Global Energy Investment Scene.”
Roberto Daniele, Managing Director of ENI Muara Bakau, said that Indonesia now ranks highest in ENI’s global exploration priorities. “Indonesia is at the top of our global exploration plans,” he told the the plenary session of IPA Convex.
ENI, which made one of the world’s largest recent gas discoveries in the Geng North block, plans to conduct three additional drilling campaigns this year to expedite development.
Adnan Bu Fateem, Chief Operating Officer of Mubadala Energy, emphasized Indonesia’s strategic importance in the company’s global portfolio. “We have been operating in Indonesia for 12 years, and our discoveries align with our long-term strategy,” he said, underlining the urgency of accelerating gas project developments to meet national energy needs.
Kathy Wu, Regional President for Asia Pacific Gas & Low Carbon Energy at bp Indonesia, highlighted Indonesia’s significant oil and gas potential and affirmed bp’s long-term investment commitment. She stressed that government support remains critical for exploration activities, particularly in terms of contract certainty, fiscal stability, and investment return assurances.
“Appropriate incentives are key to sustaining complex projects,” she noted.
bp Indonesia is currently the country’s largest gas contributor, producing around 600 MMscfd, processed at the Tangguh LNG plant − the second-largest LNG facility in Indonesia.
Yuzaini Md Yusof, President Director and Country Chairman of PETRONAS Indonesia, said that internal reviews conducted with international consultants indicate Indonesia’s rising competitiveness in exploration investment, particularly in frontier areas. “We are optimistic that Indonesia will remain a vital part of our portfolio. Long-term legal certainty and contracts of 30–35 years are crucial for investment sustainability,” he said.
From the national side, Awang Lazuardi, Director of Production and Development at Pertamina Hulu Energi (PHE), pointed out that stakeholder support − especially in streamlining permit processes − is vital for project viability. “There is room for improvement, especially in permitting systems. Simplification and efficiency are essential given the time sensitivity of project economics,” he said.
Echoing this sentiment, Wang Lei, President Director of PetroChina International Jabung Ltd, said that Indonesia still holds vast untapped O&G potential that can be developed sustainably with the right technology. “Streamlining administrative systems, accelerating Plan of Development (POD) approvals, and reducing permit requirements will greatly support upstream development,” he said.
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