Indonesia Raises 2027 Oil Lifting Target to 612,500 Barrels Per Day

RRI.CO.ID, Jakarta – Indonesia’s House of Representatives (DPR) and the government have agreed to raise the crude oil lifting target to 612,500 barrels per day (BOPD) in the 2027 draft state budget. The figure is higher than the government's initial proposal of 610,000 BOPD.

The agreement was reached during a meeting between the House and the country's Minister of Energy and Mineral Resources, Bahlil Lahadalia, at the Indonesian Parliamentary Complex in Jakarta on Monday, August 31, 2026.

The target was adjusted after the DPR reviewed various efforts to increase oil production and lifting, including a well reactivation program promoted by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). House member, Ramson Siagian, said the adjustment to 612,500 BOPD reflected the parliament’s optimism about the government and upstream oil and gas stakeholders' efforts to increase lifting.

"In our previous discussions, the government proposed 610,000 barrels per day. We proposed that the figure be set at 612,500 barrels per day because we have seen SKK Migas’s ongoing efforts to increase lifting," Ramson said.

Similarly, Commission XII member, Bambang Patijaya, said the Golkar Party faction supported the adjustment. He said the revised lifting target had considered technical studies and calculations.

"Regarding the basic assumptions for the energy and mineral resources sector in the 2027 state budget, the Golkar Party faction agrees, particularly with the adjustment of the lifting target from 610,000 to 612,500 BOPD, which is of course based on technical considerations and studies," he said.

Minister Bahlil also welcomed the proposal, as the government agreed to the 612,500 BOPD crude oil lifting target. The agreement was subsequently confirmed by Chairperson of the House's Commission XII, Melchias Marcus Mekeng, as he read out the meeting’s conclusions.

“Based on what has been conveyed by each faction, we agree to crude oil lifting of 612,500 barrels per day,” he said.

Besides the oil lifting target, the meeting discussed several macro indicators for the sector in the 2027 budget, including the Indonesian Crude Price (ICP), natural gas lifting, and cost recovery. Based on data from the Ministry of Energy and Mineral Resources and the meeting’s summary sheet, the agreed indicators include an ICP of US$75 per barrel, crude oil lifting of 612,500 BOPD, and cost recovery of US$10.1 billion.

Regarding the ICP, Bahlil estimated that oil prices could fall below US$70 per barrel if global geopolitical tensions ended sooner than expected. Such a development, he said, could potentially reduce energy subsidy costs.

“If geopolitical tensions end quickly, our prediction is that prices will ease to below US$70 per barrel, allowing us to achieve greater efficiency in subsidies,” the Minister said.