Indonesia's Oil Output Falls Below Target Amid Pipeline Disruptions

Indonesia's oil production has fallen below the government's target of 610,000 barrels per day (bpd) in the first seven months of 2026. According to the Ministry of Energy and Mineral Resources (ESDM), average oil production reached 578,156 bpd from January through July 2026.

The figure represents around 95% of the government's target, with output affected by pipeline disruptions, power supply problems, and natural declines at major producing blocks. The ESDM Director General of Oil and Gas Laode Sulaeman attributed the decline to several factors, particularly disruptions affecting the Rokan Working Area (WK) in Riau and operational challenges in the Cepu block.

The Rokan block has faced issues with leaks and fires involving pipelines operated by PT Transportasi Gas Indonesia (TGI), as well as problems with its electricity system. Laode stated that work to address the pipeline leaks had been completed, but production at Rokan continued to face challenges due to power supply issues.

The Cepu block is experiencing a relatively severe natural decline in 2026, which has contributed to Indonesia's oil output falling below its target. The government has taken measures to reduce the rate of decline, with Laode stating that efforts are being made to maintain a flat production level and prevent further decline.