Indonesia Accelerates Oil, Gas Exploration to Cut Imports

RRI.CO.ID, Jakarta - The Ministry of Energy and Mineral Resources (ESDM) will accelerate oil and gas exploration and development in response to geopolitical tensions that have driven global oil prices higher.

“We are ensuring that exploration is accelerated. We will also provide various support measures,” Deputy Energy and Mineral Resources Minister Yuliot Tanjung said after a visit to the Kalibata Heroes Cemetery in Jakarta on Tuesday, Sept. 29, 2026, as quoted by Antara.

According to Yuliot, exploration activities can be carried out either by the government or by business entities.

He said the government has identified several oil and gas fields with production potential of around 2,500 to 3,000 barrels per day, with development expected to be accelerated in 2027 and 2028.

The additional output is expected to support the government’s target of achieving oil production of 1 million barrels per day by 2029–2030 as part of efforts to strengthen national energy self-sufficiency.

“We will accelerate exploration and development in 2027 and 2028 so that our target of 1 million barrels can be achieved,” Yuliot said.

He noted that the acceleration measures are a response to geopolitical tensions that have contributed to higher global oil prices. The ministry recorded that global oil prices briefly reached US$107 per barrel in late September 2026.

“Since most of our crude oil supply is still imported, we need to look at how domestic sources can be increased,” Yuliot said.

The rise in oil prices has been linked to uncertainty surrounding relations between the United States and Iran, including developments involving the Strait of Hormuz and discussions over Iran’s nuclear program.

According to previous reports, Iran has sought a return to a memorandum of understanding reached in June that included the reopening of the Strait of Hormuz and plans to resume nuclear negotiations in exchange for several measures, including sanctions relief, the release of frozen Iranian assets held overseas and the lifting of the US blockade on Iranian ports.

However, US officials said President Donald Trump no longer wished to return to the arrangement. Washington has also tightened sanctions and maintained its blockade on Iran.

Meanwhile, mediators have urged Iran to make concessions regarding its nuclear program in an effort to revive ceasefire negotiations with the United States.

According to a report by The Wall Street Journal, cited by Anadolu on Monday, the initiative followed Trump’s rejection of Iran’s proposal for a seven-day ceasefire aimed at reopening the Strait of Hormuz and ending the US blockade of Iranian ports.

The mediators viewed the proposal as an opportunity, albeit with limited prospects of success, to encourage Iran to take steps regarding its nuclear program. So far, Iran has shown no indication that it is prepared to discuss the issue. ***