Indonesia to Auction 75 Oil and Gas Blocks by 2027 to Boost Energy Security

Indonesia Targets 75 New Oil and Gas Blocks for Auction by 2027

Indonesia's Upstream Oil and Gas Regulatory Task Force (SKK Migas) has announced plans to auction 75 oil and gas working areas by 2027. This strategic move is aimed at significantly boosting exploration activities and securing the nation's future energy supplies. The announcement was made by Djoko Siswanto, Head of SKK Migas, during a hearing with the Energy Commission XII of the House of Representatives (DPR) on Wednesday, November 12, 2025.

The initiative underscores Indonesia's commitment to revitalizing its oil and gas sector and achieving energy self-sufficiency. The government hopes to attract substantial private investment into these new exploration areas.

Driving Exploration and Production Targets

The auction of these 75 blocks is a critical component of Indonesia's broader strategy to increase national oil and gas reserves and reverse a trend of declining production. SKK Migas has identified 65 unexplored oil and gas basins across the archipelago, which are believed to hold significant untapped reserves.

Djoko Siswanto expressed optimism that these new explorations could lead to 'giant discoveries,' potentially restoring national oil output to 1.6 million barrels per day (bpd). He cautioned that without major new reserves, crude output could fall significantly, emphasizing the crucial role of exploration.

Deputy Energy and Mineral Resources Minister Yuliot Tanjung had previously stated on July 8, 2025, that the government was offering 75 oil and gas blocks, with a majority located in the eastern regions, including 20 blocks in the Maluku-Papua region, such as Seram-Aru and Cendrawasih Bay II and III.

Call for Private Investment and Regulatory Streamlining

SKK Migas emphasized that investment for exploration should ideally come from private entities rather than the state budget, promoting efficiency and broader private-sector participation. This approach aims to leverage external capital and expertise to accelerate discovery and development.

President Prabowo Subianto has also urged the simplification of regulations to facilitate exploration and production activities for contractors interested in the offered oil and gas blocks. This directive highlights the government's intent to create a more attractive and efficient investment climate for the upstream sector.

Outlook for Indonesia's Energy Future

The auction process for the 75 oil and gas working areas is expected to unfold between 2025 and 2027, with some tenders for 2025 already underway and new offerings planned for subsequent years. This ambitious plan is central to Indonesia's long-term energy security goals and its aspiration to regain a prominent position in global oil and gas production.