Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia plans to review several oil and gas contractors whose projects have stalled or failed to progress, as the government aims to ramp up national oil production.

Indonesia set a crude oil lifting target of 900,000 to 1 million barrels of oil per day (BOPD) by 2029. The target nearly doubles the current production level, which hovers around 580,000 bpd. Still, Bahlil remains optimistic that the goal is achievable. For 2025, the target is set at around 600,000 BOPD, according to the state budget draft.

Speaking at the launch of the first production from the Forel and Terubuk oil fields in Natuna, Bahlil said several oil contractors (KKKS) have held operating licenses in key areas, including offshore Natuna in the Riau Islands, but have yet to commence any significant work.

“There are KKKS that already hold permits in Natuna, but have not begun operations. If these blocks were managed properly, they could contribute significantly to our national oil lifting,” Bahlil said.

Although he declined to name specific companies, Bahlil confirmed that he has requested approval from President Prabowo Subianto to conduct a formal evaluation and potentially reassign unproductive blocks to more capable firms.

“With the President’s permission, we intend to evaluate these licenses and reallocate them to contractors who can deliver and support our energy sovereignty goals,” he said.

The review is aligned with President Prabowo’s broader energy security agenda, which prioritizes increasing domestic oil production to reduce reliance on imports and strengthen national resilience.

Bahlil added that the Ministry’s roadmap for the sector requires immediate execution and that any necessary regulatory measures would be pursued in accordance with national interests.

“Under the law, we may take corrective action, not just for the sake of investors, but for the benefit of the people, the nation, and the state,” he said.

Indonesia’s oil production has been declining steadily in recent years: from 707,000 bpd in 2020, to 660,000 bpd in 2021, then down to 612,000 bpd in 2022, and further to 606,000 bpd in 2023.