Jakarta, Indonesia – April 25, 2026 – In a significant move to bolster its energy security and production targets, Indonesia has announced the offering of 116 new oil and gas blocks to global investors. The announcement by the Ministry of Energy and Mineral Resources (ESDM) comes as the nation navigates escalating geopolitical tensions in the Middle East, which have led to the closure of the Strait of Hormuz, a critical artery for approximately 20 percent of Indonesia's crude oil supply [1, 5].

The government has set an ambitious oil production target of 610,000 barrels per day for 2026, a goal that hinges on both new exploration and optimizing existing assets [1, 5]. A major factor in this strategy is the recent substantial discovery at the Geliga Well in the Ganal Block, offshore East Kalimantan, estimated to hold 5 trillion cubic feet of gas and 300 million barrels of condensate [1, 5].

To attract international participation, Indonesia is offering enhanced contract flexibility, allowing investors to choose between Gross Split and Cost Recovery schemes. Financial incentives have also been adjusted to better align with the risk profiles of individual fields [1, 5]. Furthermore, ESDM Ministerial Regulation No. 14 of 2025 facilitates technological and operational collaboration in existing working areas [1, 5].

This initiative aligns with Indonesia's broader strategy to reduce import dependence and reverse a decline in oil production. The country aims to nearly double its oil output to 1 million barrels per day [3]. Earlier tenders in late 2025 and early 2026 saw blocks like Tapah, Nawasena, and Mabelo being offered, with bids due by February 5, 2026 [3]. In March 2026, nine oil and gas exploration blocks were awarded to a mix of domestic and international companies, securing nearly $85 million in investment commitments [6].

While Indonesia actively seeks investment in its oil and gas sector, the country is also navigating its energy transition. Despite pledges to phase down coal, coal continues to be a dominant energy source, supplying about 68 percent of national electricity, and renewable energy targets have faced challenges in implementation [13]. However, new regulations for energy conservation services came into effect in January 2026, aiming to improve the efficiency services sector [12].

The global oil and gas industry in 2026 is characterized by capital discipline and a focus on operational efficiency, with potential price volatility [14, 11]. Geopolitical shifts and supply chain localization are also influencing investment decisions [8]. Indonesia's proactive offering of oil and gas blocks, coupled with regulatory reforms, positions it to potentially attract significant investment amidst these global trends.