Indonesia's Upstream Oil and Gas Regulatory Agency (ESDM) Targets US$17.6 Billion in Investment in 2021

The Ministry of Energy and Mineral Resources (ESDM) targets US$17.6 billion in investment in Indonesia's oil and gas (migas) sector in 2021. This figure is almost half of the targeted investment in the energy and mineral resources sector, which is valued at US$36.4 billion this year.

The government is optimistic that this target can be achieved, considering that domestic oil and gas investment remains a preferred choice for both foreign and domestic investors. This is reflected in the high realization of oil and gas investment until the end of last year.

ESDM recorded that investment realization in the oil and gas sector reached US$13.04 billion, or Rp 184.13 trillion (using an exchange rate of Rp 14,105 per US dollar) in 2020. This comprises upstream sector investment of US$10.47 billion and downstream sector investment of US$2.58 billion.

Upstream oil and gas investment details are as follows: production, US$7.62 billion; development, US$1.16 billion; exploration, US$444.87 million; and administration, US$718.22 million. Downstream oil and gas investment details are as follows: processing, US$1.3 billion; transportation, US$1.08 billion; storage, US$157.23 million; and trading, US$47.66 million.

To achieve greater self-sufficiency in meeting domestic oil and gas needs, the government took over the Mahakam Block from Total E&P Indonesie and Inpex Corporation in 2018 and the Rokan Block from Chevron this year.