Indonesia Oil & Gas Market Report, and Forecast 2026-2032

Study Period

2020- 2032

Market (2025)

645.3 KBPD

Market (2032)

721.21 KBPD

CAGR

1.60%

Major Markets Players

PT Pertamina, Chevron Pacific Indonesia, ExxonMobil Indonesia, BP Indonesia, Shell Indonesia and Others

Indonesia Oil & Gas Market Insights & Analysis

The Indonesia Oil & Gas Market is expected to register a CAGR of around 1.60% during the forecast period 2026–2032. In 2025, the market size is valued at approximately 645.3 thousand barrels per day, and it is projected to reach nearly 721.21 thousand barrels per day by 2032. The country remains an essential energy player across Southeast Asia, supported by its significant hydrocarbon reserves, increasing domestic energy demand, and government reforms focused on advancing upstream & downstream activities. Also, being one of the leading developing economies, the nation plays a trivial role in regional energy security.

Moreover, the Indonesia Oil & Gas Market covers midstream transportation, upstream exploration, and downstream refining & distribution. The country’s government, via its regulatory agency SKK Migas, actively inspires foreign investment by apprising Production Sharing Contract (PSC) schemes & speeding up licensing procedures. Also, despite concerns such as aging fields & declining output, various enhanced oil recovery (EOR) projects & new exploration contracts are in progress, specifically in regions like Kalimantan & offshore Sumatra.

Furthermore, Indonesia's commitment to minimizing fossil fuel dependency while ensuring energy security is motivating diversification efforts, such as the expansion of gas infrastructure, including LNG terminals & gas pipelines. Also, Indonesia Oil & Gas Market companies are investing in digital oilfield technologies & sustainable exploration approaches to enhance efficiency.

Additionally, the Indonesia Oil & Gas Market outlook is observed to be promising, driven by strategic investments in new offshore blocks, advancements of existing refineries, and increasing domestic demand for natural gas. Along with this, government-backed policies & incentives, together with private sector associations, are destined to unlock further development opportunities through 2032. Additionally, as Indonesia continues to stabilize its energy transition alongside economic growth, its Oil & Gas Market remains central to national development, thereby enhancing the market share in the years to come.

Indonesia Oil & Gas Market Upgrades & Recent Developments

2025:

• PT Pertamina initiated operations at the revamped Balikpapan Refinery, rising refining capacity & introducing cleaner fuel production technologies, in alignment with Indonesia’s energy transition goals.
• Eni Indonesia declared a substantial gas discovery in the Geng North-1 well, offshore East Kalimantan, probable to hold over 1 trillion cubic feet (TCF) of gas reserves, marking one of the most significant finds across the region.

Indonesia Oil & Gas Market Dynamics

• Driver: Mounting Energy Demand & Economic Progress to Drive Market Growth

The nation’s swiftly expanding economy & urbanization are driving up domestic demand for oil & gas. Further, with increasing industrial activity & transportation requirements, the government is prioritizing investments in infrastructure, like gas pipelines & LNG regasification terminals. Moreover, the increasing population & evolving middle class are growing the consumption of energy products, reinforcing the role of Indonesia Oil & Gas Market companies in meeting national energy goals.

• Challenge: Decreasing Oil Production from Mature Fields to Limit Industry Growth

One of the acute challenges in the Indonesia Oil & Gas Industry is the drop in production from aging oil fields in Sumatra & Java. Also, despite being historically rich in hydrocarbons, several of these fields have reached maturity. Furthermore, without noteworthy EOR investments or discoveries, Indonesia’s status as a net oil importer might deepen, affecting both the Indonesia Oil & Gas Market size & energy independence, hence creating a barrier for market progression.

• Opportunity: Offshore Exploration & Deepwater Reserves to Generate Prospects

The country’s widespread maritime geography presents enormous untapped offshore oil & gas reserves. Also, opportunities exist in underexplored regions like Eastern Indonesia, where international companies are showing interest. Additionally, the embracing of modern seismic & drilling technologies could unlock these reserves, specifically as the government proposes enhanced fiscal incentives. Also, these advancements could potentially uplift Indonesia as a major oil exporter again in the succeeding years.

• Trend: Energy Transition & Gasification Strategy to be Trending

Indonesia is moving away from oil & toward gas to meet its objective of having a net-zero economy by 2060. This propensity is reflected in the "gasification" of the domestic industry, which includes increasing the usage of LNG, assimilating municipal gas networks, and turning coal facilities to gas.  Moreover, leading oil corporations in Indonesia, like Pertamina and Chevron Pacific Indonesia, are supporting the drive towards cleaner fuels, like biofuels & low-emission refining methods.

Indonesia Oil & Gas Market Segment-Wise Analysis

By Sector:

• Upstream
• Midstream
• Downstream

The Upstream Sector captures the leading share in the Indonesia Oil & Gas Market. The country's constant exploration efforts & plans to increase the production of natural gas & crude oil are to blame for this. Drilling in deepwater & frontier basins is growing as a result of the government presenting new exploration contracts & enacting laws that are promising to investors.  Moreover, two leading areas of interest are Kalimantan & offshore Sumatra. Notwithstanding current obstacles, upstream continues to be the most lucrative & largely invested industry, and it is vital for supplying local energy requirements & maintaining import stability.

Regional Projection of the Indonesia Oil & Gas Industry

The Indonesia Oil & Gas Market is geographically diversified, covering:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Kalimantan dominates the regional segmentation across the Indonesia Oil & Gas Market owing to its rich oil & gas reserves and active exploration activities. Big onshore & offshore blocks, like the Mahakam & East Kalimantan basins, are located in the region.  Large operators with substantial investments in this region include Eni, Chevron, and Pertamina.  Kalimantan's status as a key participant in the Indonesia Oil & Gas Market. Also, through 2032, Kalimantan would continue to draw noteworthy investments due to planned infrastructure, including LNG terminals & improved logistics.

What Does Our Indonesia Oil & Gas Market Research Study Entail?

• The Indonesia Oil & Gas Market Research Report highlights the forecast growth rate (CAGR) by anticipating the market size and share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The Indonesia Oil & Gas Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.