The interest of investment in oil and gas exploration in Indonesia continues to increase, along with the discovery of large oil and gas reserves in recent years.

Tangerang, Banten (Indonesia Window) – The interest of investment in oil and gas exploration in Indonesia continues to increase, along with the discovery of large oil and gas reserves in recent years that have successfully revived industry optimism.

In a plenary session entitled ‘Enhancing Indonesia's Long Term Competitiveness in the Global Energy Investment Scene’ at the IPA Convention & Exhibition (IPA Convex) 2025 at the Indonesia Convention Exhibition (ICE) BSD City, Tangerang, Banten province, on Tuesday (May 20), leaders of global oil and gas companies expressed their commitment to Indonesia as the main destination for exploration investment.

On that occasion, the managing director of ENI Muara Bakau, Roberto Daniele, emphasized that Indonesia is currently ENI's main priority in oil and gas exploration activities.

"We can say that Indonesia is in the top position in our global exploration plan," he said.

ENI is listed as one of the companies with the largest oil and gas reserves, including in Geng North which is one of the largest discoveries in the world in recent years. To accelerate development, ENI will conduct three additional drillings this year.

The Geng North Gas Field is located in Kutai Basin, Makassar Strait, and is included in the North Ganal working area.

Meanwhile, Mubadala Energy Chief Operating Officer, Adnan Bu Fateem, said that Indonesia is a key strategic market in his company's global portfolio.

"We have been operating in Indonesia for 12 years, and our reserve findings are in line with the company's future strategic direction," he explained, while emphasizing that accelerating the development of gas projects is very important to support national energy needs.

Regional president Asia Pacific G& LCE bp Indonesia, Kathy Wu, stated that Indonesia has great oil and gas potential and is an important part of bp's global portfolio.

She emphasized that bp is committed to continuing to invest long-term in Indonesia.

“Exploration requires strong support from the government. The government has made many improvements, but what is crucial is contract guarantees, fiscal stability, and certainty of return on investment, especially for complex projects. The right incentives will greatly help the sustainability of the project,” Wu explained.

Currently, bp Indonesia is the largest gas contributor in Indonesia with a production volume of around 600 Million Standard Cubic Feet per Day (MMscfd), which is processed at the Tangguh LNG plant—the second largest LNG plant in Indonesia.

President Director & Country Chairman of PETRONAS Indonesia, Yuzaini Md Yusof, said that based on an internal study with international consultants, Indonesia’s position as a destination for oil and gas investment continues to strengthen, especially in terms of fiscal provisions and support in frontier exploration areas.

During its two decades of operating in Indonesia, PETRONAS has recorded many advances in terms of regulations and fiscal schemes.

“We are optimistic that Indonesia will continue to be an important part of our portfolio. Legal certainty and long-term contracts of up to 30–35 years are important factors in determining the sustainability of investment,” Yuzaini said.

From the national side, the Director of Production and Development of Pertamina Hulu Energi (PHE), Awang Lazuardi, said that the support of stakeholders, especially in terms of simplifying the licensing process, greatly influences the economic feasibility of oil and gas projects.

"There is room for improvement, especially in the licensing system. We really hope for government support to create a simpler and more efficient process, because time sensitivity greatly affects the economics of the project," he explained.

In line with this, the President Director of PetroChina International Jabung Ltd, Wang Lei, emphasized that Indonesia's oil and gas potential is still very large and can be utilized sustainably with the right technology.

"Simplifying the administrative system, including accelerating the discussion of the Plan of Development (POD) and reducing the number of permits, will greatly assist the development of oil and gas blocks," Wang noted.

Reporting by Indonesia Window