The Indonesian government aims to increase its crude oil production to 0.9-1 mb/d by 2028, reversing a decades-long decline. Currently, production is around 0.6 mb/d while the country imports nearly 1 mb/d to meet domestic demand. This target is part of a broader strategy to enhance energy security and restore the country’s oil output to levels last seen in the 1990s when Indonesia was a key OPEC member.
A significant part of this effort includes reactivating idle oil wells, with over 40,000 wells in total, though only 16,000 are currently active. The government also plans to redirect nearly half of its projected crude oil exports (28 mbl) to domestic refineries to strengthen local fuel supply. Indonesia’s refineries are being upgraded to process a broader range of crude, including lower-quality oil, and new refineries are under construction. This shift aims to reduce dependency on oil imports and boost domestic production.