Upstream Oil and Gas Investment Has Fallen Since 2014

Upstream oil and gas investment has shown a declining trend over the past three years. In 2014, upstream oil and gas investment in Indonesia reached US$20.4 billion. This achievement was also the highest level of upstream oil and gas investment, coinciding with the rise in global crude oil prices to over US$100/barrel. However, it has since continuously declined to US$9.3 billion in 2017.

Meanwhile, in the first three months of 2018, domestic upstream oil and gas investment recorded a 26.3% increase to US$2.4 billion from US$1.9 billion in the first three months of the previous year. However, this achievement only reached approximately 17% of the US$14.2 billion target for the year.

Government revenue from upstream oil and gas throughout 2017 increased by 32.3% to US$13.2 billion from the previous year. In the first three months of this year, it reached US$3.9 billion, or approximately 33% of the targeted US$11.9 billion for the year. Cost recovery reached US$2.6 billion, or 26% of the US$10.1 billion target.

Note: The graph data has been updated to the end of 2019 based on the SKK Migas press conference in January 2019.