Jakarta. Indonesia is accelerating oil exploration and production as global crude prices climb above $100 a barrel and domestic output remains below 600,000 barrels per day, underscoring the country's continued dependence on imported oil.

Brent crude futures for November delivery rose $1.71 to $106.99 a barrel on Tuesday.

Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the surge in global prices had reinforced the need to develop domestic sources and reduce reliance on imports.

“Since most of the energy we use for domestic needs is still imported, we must look at domestic sources and see how we can increase production,” Yuliot said.

Indonesia's average crude oil production reached about 578,000 barrels per day between Jan. 1 and July 31, according to Energy and Mineral Resources Ministry data. That puts output about 422,000 barrels per day below the government's target of more than 1 million barrels per day.

Yuliot said several domestic oil fields had the potential to increase production, with some estimated to be capable of producing between 2,500 and 3,000 barrels per day.

The government plans to accelerate exploration and production activities in 2027 and 2028 to tap that potential and push national output above 1 million barrels per day.

“We will boost this exploration and production potential in 2027 and 2028 so that our target of over 1 million barrels can be achieved,” Yuliot said.

He said both state and private-sector companies would be encouraged to accelerate exploration, while the government would provide incentives to support new projects.

Oil Import Bill Rises
The push to raise domestic production comes as Indonesia's oil and gas import bill continues to climb.

Data from the Central Statistics Agency (BPS) showed that the value of oil and gas imports reached $25.77 billion in the first seven months of 2026, up 40.24% from the same period last year. The increase was driven mainly by crude oil and petroleum products. Crude oil imports alone rose by $2.08 billion, or 41.81%, from January through July compared with the same period in 2025. In July alone, the value of crude oil imports jumped $406.3 million, or 51.68%, from a year earlier. Total oil and gas imports rose 49.91% to $3.77 billion during the month.

Higher global oil prices are also adding pressure to the government's fuel-pricing policy.

Yuliot said prices of subsidized fuels would remain unchanged through the end of the year, although maintaining those prices would require government subsidies.

“For subsidized fuel, as stated by the minister, we will maintain the current price without any increase until the end of the year. This requires subsidies,” he said.

Nonsubsidized fuel, meanwhile, will continue to follow market prices and may be adjusted based on average prices over a specified period.

“As for nonsubsidized fuel, it is adjusted according to market prices,” Yuliot concluded.

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