RRI.CO.ID, Jakarta - The Indonesian Petroleum Association (IPA) has voiced support for the government’s agenda to accelerate oil and gas production, stressing that partnerships with the government are vital to overcoming challenges in the upstream industry.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, said oil and gas lifting cannot proceed effectively without collaboration. “A partnership must be established between Production Sharing Contract (PSC) Contractors and the government. We have already undertaken various reforms, including regulatory measures to accelerate progress. I urge the Upstream Oil and Gas Regulatory Task Force (SKK Migas) to report any lingering delays directly to me,” Minister Bahlil said in Jakarta on Thursday, May 21, 2026.

The government reaffirmed its readiness to provide incentive facilities, including tax incentives, to support upstream projects. “These facilities are granted fairly and only to PSC Contractors deemed eligible through a feasibility study,” Minister Bahlil added.

IPA President Kathy Wu outlined three foundations for sustaining partnerships: legal certainty, respect for contracts, and accelerated project timelines. She emphasized that upstream projects are capital‑intensive, high‑risk, and long‑cycle, with investment decisions spanning years to decades.

“When fiscal terms and contracts are consistently honored, investor confidence grows, capital continues to flow, and projects can move forward. This creates conditions where investments deliver significant added value for Indonesia,” Kathy said.

She noted that excessively long project cycles remain one of the industry’s greatest risks. “All parties face a shared challenge to accelerate project development by minimizing obstacles and delays,” she added.

Kathy also underscored the importance of exploration. “Indonesia still has vast potential, with more than 50 percent of national oil and gas basins yet to be fully explored. The country has clear energy production targets, and IPA is ready to support those ambitions,” she said.

Achieving these goals, she stressed, requires speed, coordination, and alignment across the system. “IPA reaffirms its commitment to continue supporting and collaborating,” Kathy concluded. (Gusti Panji)