The upstream oil and gas industry continues to demonstrate strong momentum, with the number of development wells drilled reaching 337 by May 2025, a 20-percent increase compared to the same period last year, according to the Upstream Oil and Gas Regulatory Task Force (SKK Migas).

The regulatorory body noted that increased drilling activity has contributed to rising national oil and gas production, with oil lifting in June 2025 exceeding the state budget target.

“Successful development drilling has become a key contributor to the increase in production and lifting of oil and gas as of June,” SKK Migas said in a statement on Sunday, July 13, 2025.

The agency is targeting 993 development wells for the full year and continues to press for accelerated drilling activities by Production Sharing Contract (PSC) contractors. Coordination efforts and “out-of-the-box” strategies are being deployed to ensure the 2025 drilling target is met.

Historical data from SKK Migas shows a significant rebound in drilling activity after a dip between 2014 and 2017. From a low of 223 wells in 2017, the number rose to 289 in 2018 and further surged to 401 in 2019. Despite the global disruption from the COVID-19 pandemic, drilling operations remained resilient, with 395 wells in 2020, increasing to 616 in 2021 and 780 in 2022. The trend continued in 2023 with 799 wells and reached 899 in 2024.

As Indonesia moves into the second half of 2025, rising geopolitical tensions and soaring global oil prices have added urgency to energy security efforts.

A member of Energy Commission XII of the House of Representatives (DPR), Jalal Abdul Nasir, warned of the vulnerabilities exposed by the recent spike in global oil prices, which have climbed to US$69.33 per barrel due to conflicts in the Middle East.

“The sharp fluctuation in oil prices caused by Middle Eastern tensions highlights how fragile our energy security is if we continue to rely on global market dynamics,” Jalal said in Jakarta on Monday, July 14, 2025.

He urged the government to step up domestic oil and gas production as a short-term measure to curb import dependency and bolster supply resilience. He also encouraged SKK Migas and PSC contractors to work aggressively toward lifting targets, especially ahead of deliberations on the 2026 State Budget (RAPBN).

In the medium term, Jalal stressed the importance of improving energy infrastructure, including expediting the development of domestic refineries and optimizing fuel distribution systems.

“This must serve as a wake-up call and a momentum to accelerate our national energy transformation,” Jalal said.