Jakarta. Indonesia’s dependence on imported oil and gas may be the result of deliberate policy sabotage, Energy and Mineral Resources Minister Bahlil Lahadalia suggested on Monday, as the government pushes to revive domestic energy self-sufficiency.

Speaking at the 2025 Energy Mineral Forum at the Kempinski Hotel in Jakarta, Bahlil said the country’s energy consumption, particularly in oil and gas, remains heavily reliant on imports, despite Indonesia’s historical capacity to meet its own needs.

“Is our declining oil production due to a lack of natural resources? Or is this being deliberately suppressed to justify continued imports?” Bahlil said. “Honestly, I believe this is by design.”

While he stopped short of naming names, Bahlil alleged that certain actors had intentionally undermined Indonesia’s oil lifting capacity, ultimately weakening national energy independence.

The government is tightening oversight of the energy sector following a major corruption scandal involving Pertamina’s subsidiaries. Starting in February, fuel import licenses will be reviewed every three months to prevent abuse and improve transparency. The move follows allegations of irregularities that cost the state an estimated Rp 193.7 trillion ($11.9 billion) between 2018 and 2023. Among those named in the case is Muhammad Kerry Adrianto Riza, an executive at Navigator Khatulistiwa and the son of oil tycoon Mohammad Riza Chalid. Riza, a longtime figure in Indonesia’s oil trade, once controlled Pertamina Energy Trading Ltd (PETRAL) and Global Energy Resources. His name has appeared in earlier controversies, including the 2008 Zatapi crude oil import case, which was later dropped due to a lack of proven state losses.

Bahlil recalled that Indonesia once achieved energy independence in the mid-1990s, when the country produced up to 1.6 million barrels of oil per day (BOPD) while consuming only about 500,000 BOPD, allowing it to export the surplus.

“Back then, oil and gas contributed up to 45 percent of national revenue. We were a net exporter and proud of it,” he said. “Now, we’re only producing 500,000 to 600,000 BOPD. That’s a drastic drop.”

He attributed the decline to the 1997 Asian financial crisis and subsequent regulatory changes, but stressed that today’s import dependence stems from systemic issues that must be addressed directly.

To reverse this trend, the Energy Ministry is prioritizing the optimization of the country’s roughly 40,000 oil wells, about half of which are currently non-productive. Bahlil said the government will pressure oil and gas contractors to revitalize these wells and is prepared to take strong action against underperforming operators.

One such target is Japan’s Inpex Corporation, which holds the rights to a key offshore block in the Masela region of Maluku but has yet to begin production, 26 years after the initial award.

“I’ve issued a first warning letter,” Bahlil said. “If they keep playing games, there will be a second. If nothing changes, we’ll revoke their license in the name of the state. This is serious.”

This is not the first time the government has set a production deadline for Masela. Bahlil’s predecessor, Arifin Tasrif, had previously urged project operators to begin production by December 30, 2029, following Pertamina’s entry as a participating partner in the block.

Located offshore near Nustual Island in the Tanimbar Islands Regency, the Masela Block holds an estimated gas potential of 1,600 million standard cubic feet per day (MMSCFD), equivalent to 9.5 million tons of liquefied natural gas (LNG) per year, along with 35,000 barrels of condensate per day, according to government data.

Bahlil confirmed he has received President Prabowo’s approval to begin evaluating oil and gas contractors whose projects are delayed or inactive.

“The government is committed to regaining Indonesia’s status as an energy powerhouse,” he said. “We were once known as the Asian Tiger. We will get there again.”

The Masela Block is operated by Inpex Masela Ltd., which holds a 65 percent interest. The remaining 35 percent is jointly owned by Pertamina and Malaysia’s Petronas, following their July 2023 acquisition of Shell’s stake in the project.

The block was originally awarded in November 1998 under a 30-year concession set to expire in 2028. That contract has since been extended by another 20 years, further prolonging the project's timeline.

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