Indonesia Targets Higher Oil Lifting in 2027 Amid Current Production Shortfalls

Indonesia's Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia announced that the country aims to increase its national crude oil lifting target to 612,500 barrels per day in 2027. This is an increase from the current year's budget target of 610,000 bpd.

The projected rise in production will be supported by new wells in several regions, including offshore Madura developed by Malaysia's state-owned energy company Petronas. Bahlil also mentioned that Enhanced Oil Recovery (EOR) technology and potential new wells in Sumatra will be utilized to scale up output.

Indonesia has been struggling to meet its current production goals, with official ESDM data showing an average crude oil lifting of 578,156 bpd as of July 31, 2026. Bahlil attributed the deficit to operational setbacks and natural depletion across major production hubs.

The Cepu Block saw a significant drop in output from 185,000 bpd to 140,000 bpd, while 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.