Indonesia Targets Oil Production Bump to 612,500 BPD by 2027

Jakarta: Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia announced a national crude oil lifting target of 612,500 barrels per day (bpd) for 2027, an increase from the 2026 budget target of 610,000 bpd.

After a working meeting with Commission XII of the House of Representatives (DPR RI) at the Parliamentary Complex in Jakarta on Monday, Bahlil confirmed that the government and lawmakers agreed on the new production benchmark.

"We have agreed on the oil lifting target of 612,500 barrels per day," Bahlil said, as quoted from Antara, Tuesday, September 1, 2026.

Bahlil explained that the projected increase in 2027 will be supported by new production wells in several regions, including offshore Madura developed by Malaysia's state-owned energy company Petronas.

In addition, the ministry plans to scale up output using Enhanced Oil Recovery (EOR) technology and potential new wells in Sumatra.

"There is also potential for additional wells in Sumatra. God willing, let's pray that there will not be any problems with the electricity or pipeline sectors," Bahlil added.

The push for higher output comes as Indonesia struggles to meet its current production goals. Official ESDM data reveals that average crude oil lifting stood at 578,156 bpd as of July 31, 2026, falling well short of the 610,000 bpd target set in the 2026 State Budget.

Bahlil attributed the deficit to operational setbacks and natural depletion across major production hubs. The Cepu Block, straddling the border of Central Java and East Java, saw its peak output drop from 185,000 bpd to 140,000 bpd.

Meanwhile, operations at the Rokan Block in Sumatra were crippled by technical disruptions, including gas pipeline leaks managed by PT Transportasi Gas Indonesia (TGI) and widespread electrical grid failures.

"We lost approximately 4 to 5 million barrels. This means that the 2026 lifting target of 610,000 barrels per day is still far from being achieved," Bahlil explained.