The Government Promotes Energy Security by Optimizing Oil and Gas Production

Jakarta — The government continues to accelerate efforts to strengthen national energy security by optimizing oil and gas production. This step is being implemented in line with strategic policies to maintain production levels amid the transition to clean energy and increasing domestic energy demand ahead of Indonesia Emas 2045.

As a state-owned energy company, PT Pertamina (Persero) plays a central role in maintaining stable oil and gas supplies. Muhammad Baron, Vice President of Corporate Communications at PT Pertamina (Persero), emphasized the company’s full commitment to increasing upstream production to support the government’s priority target of energy self-sufficiency.

“All of Pertamina’s strategic programs are designed in line with President Prabowo Subianto’s Asta Cita, particularly in strengthening energy self-sufficiency through the implementation of a dual growth strategy,” Baron said.

He explained that this dual strategy includes optimizing legacy oil and gas businesses and accelerating the transition to low-carbon energy. He stated that oil and gas continue to play a key role in maintaining national energy security, thus ensuring continued innovation, operational improvements, and increased investment in the upstream sector.

Baron stated that this initiative has yielded significant results. Currently, seven subsidiaries under Pertamina’s Upstream Subholding, Pertamina Hulu Energi (PHE), are among the top 10 oil producers in Indonesia, according to the Upstream Oil and Gas Regulatory Agency (SKK Migas). This achievement demonstrates the company’s consistent commitment to strengthening its upstream sector.

“Oil and gas production remains maintained at over 1 million barrels of oil equivalent. This demonstrates Pertamina’s commitment to maintaining energy security and providing the best value for Indonesia towards its Golden Indonesia 2045,” he added.

By October 2025, Pertamina recorded oil and gas production of 1.032 million barrels of oil equivalent per day. This achievement is considered proof of the company’s successful strategy in dealing with global pressures and the natural decline in production (decline rate) in various mature fields.

At the operational level, various Pertamina subsidiaries are also strengthening field performance. PT Pertamina Hulu Sanga Sanga (PHSS) Field Manager, Widhiarto Imam Subarkah, stated that his company continues to optimize oil and gas production through the implementation of new technologies and operational innovations.

One of PHSS’s important achievements is the performance of the Mutiara and Pamaguan Fields in the Dondang area, which successfully achieved daily production of 3,600 barrels of oil and 2 million standard cubic feet of gas throughout 2025. This contribution accounts for approximately 40 percent of PHSS’s oil production and seven percent of its gas production.

“The application of innovation and technology plays a crucial role in maintaining the company’s oil and gas production levels, in line with PHE and PT Pertamina (Persero)’s commitment to providing sustainable energy for Indonesia’s development and future,” he said.

Imam added that developing the Dondang area presents its own technical challenges. The Mutiara and Pamaguan fields are located in densely vegetated areas, with parts of the site located near water bodies, necessitating a careful and environmentally adaptive operational approach.

“This challenge has driven PHSS to implement an integrated operational strategy that prioritizes safety, compliance, and environmental protection,” he explained.

Meanwhile, the government is strengthening regulations and policies to support the sustainability of the national oil and gas industry. Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, emphasized that the upstream oil and gas sector remains a key pillar of Indonesia’s energy security, particularly amidst the accelerated energy transition.

“This is a challenge for energy security and industrial growth. Therefore, in addition to strengthening oil and gas supplies, the government is also accelerating the use of alternative energy sources,” he said.

He emphasized the importance of accelerating licensing reforms, optimizing existing fields, developing new work areas, and reactivating old wells deemed to still have economic value. All of these steps are part of the government’s strategy to maintain national energy availability amidst the dynamics of global change.

With collaboration between the government, state-owned energy companies, and industry players, Indonesia is expected to strengthen the foundations of energy security while ensuring the sustainability of supply for domestic needs in the long term.

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