Home Blog Understanding Investment Opportunities in Indonesia’s Oil and Gas Sector Business Setup | Indonesia | Investor KITAS Understanding Investment Opportunities in Indonesia’s Oil and Gas Sector InCorp Editorial Team 30 April 2025 6 minutes reading time Table of Contents Investment Opportunities in Indonesia's Oil and Gas Sector Indonesia's Oil and Gas Industry: Market Outlook Top 10 Leading Oil and Gas Companies in Indonesia Guide to Investing in Indonesia's Oil and Gas Industry Why Indonesia is A Prime Destination for Oil and Gas Investment How InCorp Can Help You Succeed in Indonesia's Oil and Gas Market Indonesia’s oil and gas industry is not just a crucial sector driving the country’s economic growth, but also a promising field for potential investors. As one of Southeast Asia’s largest economies, Indonesia’s vast natural resources serve as a beacon for both local and foreign investors, promising significant growth in the years to come. With increasing global demand and domestic energy needs, this industry remains a vital investment opportunity, supported by the government’s unwavering commitment to foreign investment. This support provides a stable and conducive environment for investors, ensuring confidence in the market’s future. Investment Opportunities in Indonesia’s Oil and Gas Sector Indonesia’s oil and gas sector is supported by abundant natural resources and an evolving regulatory framework that encourages foreign investment. The country has extensive onshore and offshore fields, providing numerous opportunities for exploration, production, and refining. Upstream Oil and Gas Exploration Indonesia’s upstream sector remains a significant attraction, with the government offering new oil and gas blocks under more favorable terms. Foreign companies can participate in joint ventures with state-owned enterprises or bid for production-sharing contracts. Downstream Expansion: Refining and Petrochemicals Indonesia aims to expand its oil-refining capacity to reduce its import dependency. Investments in new refineries and the modernization of existing ones present significant opportunities for engineering, procurement, and construction companies. LNG and Gas Infrastructure The demand for liquefied natural gas (LNG) is rising, driven by Indonesia’s commitment to clean energy. This has led to investment opportunities in LNG storage, regasification terminals, and gas pipeline networks. Oilfield Services and Equipment Companies specializing in drilling services, seismic surveys, and enhanced oil recovery (EOR) technologies can benefit from Indonesia’s growing demand for oilfield services. The government is also encouraging local content in procurement, opening doors for domestic service providers. READ MORE:Fiscal Incentives for Oil and Gas Contractors in IndonesiaCarbon Trading in Indonesia: Key Projects and Investment InsightsUnlocking Growth in Indonesia’s Oil and Gas Industry Indonesia’s Oil and Gas Industry: Market Outlook Indonesia’s oil and gas industry is expected to remain a vital component of the country’s energy sector in 2025, despite global shifts toward renewable energy. Global oil demand is projected to stay strong, with fossil fuels continuing to dominate the energy mix. Indonesia’s focus remains on increasing production while reducing reliance on imports. Key Market Insights for 2025 and Beyond Oil Production Goals: The government aims to achieve a production target of 1 million barrels of oil per day (BOPD) by 2030, thereby strengthening energy security. Gas Demand Growth: Indonesia’s gas demand is projected to increase by 5% annually, driven by the needs of the industrial and power sectors. Foreign Investment Opportunities: Indonesia welcomes international investors through improved production-sharing contracts (PSCs) and tax incentives. Refinery Expansion: Several major refinery projects are underway to enhance domestic fuel production and reduce import dependence. LNG Market Growth: The development of liquefied natural gas (LNG) continues to expand, positioning Indonesia as a key supplier in the Asia-Pacific region. Despite these opportunities, challenges remain, including fluctuating global oil prices and regulatory hurdles. However, with government-backed initiatives and increased investment, this industry is well-positioned for sustained growth in 2025 and beyond. Top 10 Leading Oil and Gas Companies in Indonesia Key players, including state-owned and private companies, drive Indonesia’s oil and gas industry through exploration, production, refining, and distribution. These companies play a significant role in the industry, contributing to the country’s energy security and economic growth. Here are the top 10 companies in Indonesia: Pertamina: Indonesia’s largest oil and gas company and state-owned enterprise. Chevron Pacific Indonesia: The second-largest oil and gas company, a subsidiary of Chevron Corporation. ExxonMobil Indonesia: A subsidiary of ExxonMobil Corporation, it operates several significant upstream projects. ConocoPhillips Indonesia: This country’s fourth-largest company focuses on expanding its natural gas and oil fields. CNOOC SES Indonesia: The China National Offshore Oil Corporation (CNOOC) subsidiary specializes in offshore exploration and production. Medco Energi: Indonesia’s largest private oil and gas company is expanding domestically and internationally. AKR Corporindo: Integrated energy company engaged in trading, storing, and distributing oil and gas, a key player in fuel distribution and logistics. Petronas Carigali Indonesia: A subsidiary of Petronas Malaysia, this company specializes in offshore exploration operations. Eni Indonesia is a subsidiary of the Italian oil and gas company Eni, which focuses on investing in deepwater exploration projects. BP Indonesia: A subsidiary of BP (British Petroleum) that produces and supplies natural gas (LNG). Guide to Investing in Indonesia’s Oil and Gas Industry Starting an oil and gas company in Indonesia requires navigating complex regulations and securing necessary approvals. Here is a detailed guide to the key steps involved in the process, from conducting market research to collaborating with state-owned enterprises (SOEs). Conduct Market Research: Assess investment opportunities, risks, and regulatory requirements before entering the market. Register A Legal Entity: Foreign investors must establish a company through Indonesia’s Investment Coordinating Board (BKPM). Obtain Required Permits: Secure business licenses, environmental permits, and land-use approvals to operate legally. Meet Local Content Requirements: Partner with local companies or use locally sourced equipment to comply with regulations. Collaborate with State-Owned Enterprises (SOEs): Large projects often require partnerships with entities such as PT Pertamina. Why Indonesia is A Prime Destination for Oil and Gas Investment Indonesia has been a key player in this industry for over 130 years, attracting investors with its rich reserves, flexible policies, and growing market. Strong History Indonesia’s first significant oil discovery was made in North Sumatra in 1885, followed by the discovery of the Talang Akar Field in 1912. The country joined OPEC in 1961, suspended membership in 2009, rejoined in 2016, and withdrew again in the same year due to declining production. Investor-Friendly Policies The MoEMR Regulation No. 12/2020 introduced cost-recovery and Gross Split (GS) PSC options, giving investors more flexibility. By 2021, 17 contractors will have operated under the GS model, boosting investor confidence. Restarted Oil and Gas Auctions Indonesia resumed oil and gas block auctions in 2021, following a pandemic-related pause. Key tendered areas included South Coastal Plain and Pekanbaru (CPP), Sumbagsel, Rangkas, Liman, Merangin III, and North Kangean. Major Oil Block Transfers In August 2021, the Rokan PSC, previously managed by Chevron Pacific Indonesia, was transferred to Pertamina Hulu Rokan (PHR), strengthening local energy control. Pro-Business Legal Reforms Law No. 6/2023 simplified investment procedures, land acquisition, and business operations, making it easier for foreign and local investors to enter the market. Indonesia remains an attractive destination for investments, boasting strong policies, vast reserves, and government support. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Contact Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe How InCorp Can Help You Succeed in Indonesia’s Oil and Gas Market Setting up an oil and gas company in Indonesia involves registering the company, obtaining the necessary licenses, and ensuring compliance with local regulations. InCorp Indonesia (an Ascentium Company) offers expert services to streamline your business setup: Company Registration: Ensure a hassle-free incorporation process with the help of local experts. Investor KITAS: Secure the correct visa to manage your investment legally in Indonesia. Start your oil and gas business in Indonesia by completing the form below. Read Full Bio Verified by Ales Cina Consulting Manager at InCorp Indonesia Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights. Frequently Asked Questions What duties do investors have when they own shares in a company that has been liquidated? Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation. Is the KITAS/ITAS extension possible in Indonesia? Yes. KITAS/ITAS is extendable for up to five years. What are the shareholder rights in a PMA company? Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information. They must approve significant matters through general meetings of shareholders with specified quorums, such as: Amending articles of association Changing share capital Appointing or dismissing directors and commissioners Approving major transactions, dividends, and financial statements Company reorganization What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two Get in touch with us. 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