Indonesia tells oil and gas operators to develop idle concessions or return them
Bahlil Lahadalia said the government could reassign concessions to other operators, including Pertamina, if existing holders cannot proceed.
Oil and gas companies holding Indonesian concessions should carry out stalled developments or surrender them to the state, Energy and Mineral Resources Minister Bahlil Lahadalia said at FOREK Hulu Migas 2026 in Jakarta on 28 October 2026.
His request targeted operators that had finished exploration and prepared their development plans but had not moved ahead. Bahlil said concessions returned to the government would be offered to companies able to undertake the work, with state-owned Pertamina among the possible operators.
He said Pertamina must also work quickly, despite its state ownership. Concession holders could alternatively collaborate with other companies, he added, citing the need to improve productivity and increase oil and gas lifting.
Bahlil put Indonesia’s oil needs at around 1.5-1.6 million barrels per day, against domestic crude output of about 600,000 barrels per day. He said production needed to rise to meet growing demand and described ageing wells as a major obstacle to increasing lifting.
