JAKARTA, RAKYAT NEWS – Energy experts are emphasizing the crucial role of the upstream oil and gas (migas) sector in achieving Indonesia’s energy self-sufficiency. According to energy analyst Tumbur Parlindungan, the success of this program during the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka will largely depend on strengthening the upstream oil and gas industry.

“The upstream oil and gas sector plays a vital role in achieving energy self-sufficiency by encouraging exploration for new oil and gas reserves,” Tumbur said in a statement in Jakarta on Thursday.

He noted that energy self-sufficiency must go hand-in-hand with increased investment in the upstream oil and gas sector. To achieve this, the government must create favorable conditions to attract investment in Indonesia’s oil and gas industry.

“Our reliance on fossil fuels remains above 85%, so upstream oil and gas investments are essential to boost production. We have abundant resources, but bureaucratic hurdles and other non-resource factors must be addressed to make the sector more attractive to investors,” Tumbur added.

In order to foster a better investment climate, Tumbur emphasized the need for greater collaboration between government ministries and agencies to create policies that are supportive of the industry. He urged that conflicting regulations should be eliminated to create a more streamlined process for investors.

“We are currently evaluating how attractive upstream oil and gas investments are in Indonesia, and over the next six months, we will see what direction the government takes,” he said.

Tumbur also highlighted the challenges surrounding the transition to renewable energy (EBT), pointing out that the implementation of new energy sources remains difficult, and the demand for energy continues to grow. As a result, fossil fuels like oil and gas remain crucial to meeting current energy needs.

“Renewable energy is not as straightforward as it may seem. Many countries that tried to implement renewable energy have had to fall back on fossil fuels. This is an opportunity for us to maximize our domestic oil and gas potential. There is no other option but to attract investors,” he concluded.

Previously, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reaffirmed the government’s commitment to realizing President Prabowo’s vision of energy self-sufficiency, particularly through strengthening the upstream oil and gas sector.

Indonesia’s energy resources are still underutilized, and Bahlil stressed that achieving energy independence requires breakthrough efforts and hard work, particularly in boosting oil and gas production. He emphasized that SKK Migas, the government’s upstream oil and gas implementation body, must be proactive, responsive, and adaptable to the challenges of the industry.

“I expect the upstream oil and gas industry to play a critical role in supporting Indonesia’s energy resilience,” Bahlil said.

To facilitate this, he urged SKK Migas to streamline systems that currently hinder progress, ensuring that Indonesia’s energy independence goals can be realized. Additionally, Bahlil highlighted the importance of optimizing the performance of exploration wells through technological interventions and increased investment.

In a move to boost domestic production, Bahlil also plans to re-develop idle or abandoned wells to contribute to meeting the country’s energy demand.

“To achieve energy self-sufficiency, we must optimize both new and existing wells—whether they are still under exploration or have already been explored,” he said. (Uki Ruknuddin)