Pertamina earmarks about 75% of capital expenditure for upstream operations
The company is pursuing new reserves and seeking to slow natural production declines, with investment covering Sumatra, Java and eastern Indonesia.
About 75 per cent of PT Pertamina (Persero)’s capital expenditure is being allocated to upstream oil and gas, deputy president director Oki Muraza said on 27 October 2026. He said the investment would support efforts to increase production, identify new reserves and curb natural declines in output.
Oki outlined the spending priorities at the 51st ASEAN Council on Petroleum and Energy (ASCOPE) event in Denpasar, Bali. He said the allocation reflected a government mandate to lift upstream production, alongside Indonesia’s goal of producing 1 million barrels of oil per day by 2030.
Part of the investment in Sumatra is going towards building an unconventional oil and gas ecosystem at the Rokan block. Oki estimated its oil potential at more than 11 billion barrels and said around 50 vendors were needed to help reduce production costs for each well.
Another priority is faster development of the Padang Pancuran well project within the Jambi Merang working area. Oki ranked it among Pertamina’s biggest discoveries and said its oil potential could exceed 1 billion barrels.
Java and eastern Indonesia are also receiving upstream investment. In the east, the company’s exploration work centres on gas fields in its domestic Region 4. Oki said that region contained both oil and gas, with more gas.
Pertamina separately reported that its combined oil and gas output exceeded 1 million barrels of oil equivalent per day during the 2025 financial year.
