Head of the Special Task Force for Upstream Oil and Natural Gas Business Activities (SKK Migas), Dwi Soetjipto, has set a target of USD 186.7 billion in investments to achieve a production goal of 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD) of natural gas by 2030. Dwi stressed the importance of investment to enable extensive exploration and development in the oil and gas fields. The investment climate in the upstream oil and gas sector has been improved through incentives and fiscal policy changes. The upstream oil and gas sector in Indonesia is working to increase domestic oil and gas production to meet the growing national demand due to economic growth. By 2050, oil consumption is projected to rise by 139%, and gas consumption by 298%. Dwi highlighted that while the investment attractiveness in the upstream oil and gas sector in Indonesia has improved, there are still areas that require continuous improvement. Investment in upstream oil and gas has been steadily increasing since 2021, with a 13% rise to USD 12.3 billion in 2022 compared to the previous year. In 2023, it is targeted to reach USD 15.5 billion, a 26% increase from the previous year, exceeding global investment growth rates. This growth aligns with SKK Migas' Long-Term Plan (LTP), which initially aimed for USD 13 billion in investment.
Moreover, SKK Migas is actively working to boost national gas production, particularly for use as a primary energy source during the transition to clean energy and achieving Net Zero Emission (NZE) targets by 2030. Gas is also crucial for various industries, including steel, ceramics, fertilizers, petrochemicals, and more. To achieve the 12 BSCFD gas production target, infrastructure support across Indonesia is essential to optimize the utilization of natural gas from oil and gas fields. Dwi also noted the importance of integrating upstream oil and gas activities with Carbon Capture Storage/Carbon Capture, Utilization, and Storage (CCS/CCUS) technology to meet Net Zero Emission goals, as each oil company has emission reduction targets.
