Indonesia Oil And Gas Market Size, Share, Growth, Analysis and Industry Outlook 2025-2033

Indonesia Oil And Gas Market Overview

The Indonesia oil and gas market size was valued at USD 747.20 Million in 2024. The market is projected to reach USD 863.47 Million by 2033, exhibiting a CAGR of 1.54% during the forecast period 2025-2033. Kalimantan currently dominates, driven by growing domestic energy demand, aging production fields, and natural gas development. Government initiatives and infrastructure expansion also shape the market landscape.

Indonesia Oil And Gas Market Study Assumption Years

• Base Year : 2024
• Historical Year/Period : 2019-2024

Indonesia Oil And Gas Market Key Takeaways

• Current Market Size : USD 747.20 Million
• CAGR : 1.54%
• Forecast Period : 2025-2033
• The market is driven by rising domestic energy demand fueled by population growth and industrial expansion.
• Government incentives, improved contract terms, and exploration in frontier areas attract new investments.
• Infrastructure upgrades and downstream expansion increase energy security.
• A shift toward cleaner fuels and regulatory reforms influence the competitive landscape.
• Kalimantan dominates the market with the largest share due to mature fields and established production facilities.

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Indonesia Oil And Gas Market Growth Factors

Domestic demand, spurred by population and industrialization growth, as well as government policy to reduce energy imports, drive the oil and gas sector in Indonesia. This in turn increases upstream activity, by opening up new areas for exploration and production and through regulatory changes that help attract new foreign investments. This results in a growing exploitation of conventional and non-conventional resources.

Infrastructure investment has increased, with new pipelines and oil refineries prioritized as investments to increase the efficiency of supply and reduce dependence on imports to further the nation towards energy independence. One refinery under construction has a capacity of 500,000 barrels per day and an estimated cost of USD 12.5 billion.

Market growth is expected from the move to natural gas as a cleaner energy source, liquefied natural gas investment, gas-based generation and government support for improving contracts and EOR. Development of natural gas with regulatory improvement and diversification of supply is seen as a means to secure supply and achieve cleaner energy goals in the region.

Indonesia Oil And Gas Market Trends

Natural gas is included in Indonesia's long-term energy plan. Environmental legislation and market pressure on coal and oil, as well as large liquified natural gas (LNG) and pipeline projects all support natural gas as a cleaner alternative to be used in generation and for industry. For increasing domestic gas supply, Bukit Asam plans to build a USD 3.1 billion coal-to-synthetic natural gas plant.

People explored frontier areas such as eastern Indonesia then explored deep water regions like the Arafura Sea and Papua. The government changed fiscal terms, simplified the licensing process, made existing seismic data available for use, and encouraged foreign investors in joining ventures with Indonesian firms. Gaps in infrastructure remain, but incentives are planned to reduce risk.

Governments impose domestic supply obligations which prioritize the domestic market. For example, under the Domestic Market Obligation (DMO) the production-sharing contracts must allocate for domestic supplies. This may have led to LNG exports adjusting and contracts renewing, providing energy security for industries, power plants, and households.

Most of the investment and projects in Indonesia's oil and gas sector occur in the upstream sector; the government is targeting less red tape and better utilization of marginal fields. Large company players such as Pertamina, Eni, and BP have increased investment in conventional and non-conventional exploration.

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Indonesia Oil And Gas Market Segmentation

Analysis by Sector:

• Upstream: Focuses on exploration, drilling, and production activities. It accounts for the largest investment share, driven by government incentives and the need to boost declining output.

• Midstream: Involves the transportation, storage, and processing of oil and gas, supported by expanding infrastructure to improve supply efficiency.

• Downstream: Covers refining, distribution, and sales of petroleum products, with ongoing expansions aimed at energy security.

Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Kalimantan holds the largest market share within Indonesia's oil and gas sector, owing to mature fields, ongoing exploration, large gas reserves, established processing facilities, and strategic access to export routes. The region's stable output and government support contribute to its dominance. The overall market is projected to grow at a CAGR of 1.54% from 2025 to 2033.

Indonesia Oil And Gas Market Key Players

• BP p.l.c.
• Chevron Corporation
• China National Offshore Oil Corporation
• ExxonMobil Corporation
• Petroliam Nasional Berhad (PETRONAS)
• PT Pertamina (Persero)
• PT. Connusa Energindo
• PT. Perusahaan Gas Negara Tbk
• Shell plc

Indonesia Oil And Gas Market Recent Developments & News

• In May 2025, Eni began gas production from the Merakes East field offshore Indonesia, contributing up to 100 MMSCFD or 18,000 boepd. The field supports domestic supply and LNG exports.

• May 2025 saw the inauguration of two offshore projects in the South Natuna Sea by Medco E&P Natuna, aiming to produce 20,000 barrels daily.

• JAPEX acquired a 50% stake in EMP Gebang in North Sumatra in May 2025 to develop the Secanggang field.

• TotalEnergies planned to acquire a 25% stake in Bobara oil and gas block alongside Pertamina Hulu Energi.

• Pertamina East Natuna started oil and gas exploration in the North Natuna Sea in March 2025, aiming to begin drilling in 2026.

• In December 2024, the Ministry of Energy launched auctions for six new blocks with 48 Gboe reserves and signed contracts with Harbour Energy and Mubadala Energy.

Indonesia Oil And Gas Market Key Highlights of the Report

• Comprehensive analysis of Indonesia's oil and gas market forecast from 2025 to 2033.
• Historical market trends from 2019 to 2024 detailed.
• Assessment of industry catalysts, challenges, and segment-wise market evaluation.
• Detailed competitive landscape analysis including major companies.
• Porter's Five Forces analysis included to evaluate market competitiveness.
• Coverage of sectoral segmentation: Upstream, Midstream, Downstream.

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