TANGERANG — Strong cross-sector collaboration and strategic partnerships between regulators and industry players have become the key foundation for accelerating investment and project execution in Indonesia’s upstream oil and gas sector.
SKK Migas Chairman Djoko Siswanto emphasized the government’s full commitment to creating a secure, conducive, and flexible investment climate. One of the strategies being pursued is improving coordination among ministries, which has long been recognized as a major challenge in upstream oil and gas projects.
“I believe Indonesia is now becoming increasingly flexible in terms of fiscal schemes, whether through cost recovery or other mechanisms. The government can provide a certain portion of profit sharing to contractors to ensure projects remain economically viable,” Djoko said during the Plenary Session: Path to Energy Resilience & The Role of Partnership at IPA Convex 2026 held at ICE BSD on Wednesday (20/5/2026).
He noted that project efficiency and flexibility are closely linked to project timelines, as prolonged delays could significantly reduce project economics and ultimately prevent projects from moving forward.
“Once an investment decision has been made, execution must begin immediately. If problems arise, let us sit together and resolve them one by one. The key is project acceleration. I believe there is no problem that cannot be solved,” Djoko added.
The Ministry of Energy and Mineral Resources (ESDM) acknowledged that improving ease of doing business remains essential to boosting investment appetite. One of the biggest challenges frequently faced by industry players in the field is bureaucratic coordination, particularly related to permitting and land use.
Ministry of Energy and Mineral Resources Director General of Oil and Gas Laode Sulaeman stated that the government continues to strengthen inter-ministerial coordination to untangle bureaucratic bottlenecks often cited by businesses.
“Regulations in the oil and gas sector are already quite clear, ensuring legal certainty remains intact. We continue aligning perspectives with other ministries, even late into the night, to ensure national energy security is maintained,” Laode said.
Meanwhile, PT Pertamina Hulu Energi President Director Awang Lazuardi warned of the serious consequences if cross-sector coordination fails to run effectively. According to him, delays in project execution would directly erode project economics, reduce oil production, increase dependence on imports, and ultimately burden the public.
“In my view, the most important thing is building a shared understanding that energy resilience is not merely an issue for the oil and gas industry, but a national concern,” Awang stressed.
The importance of strategic partnerships was also echoed by both international and domestic industry players under the umbrella of the Indonesian Petroleum Association (IPA).
bp Regional President Asia Pacific Kathy Wu highlighted the intense global competition for capital allocation, not only within bp but across the industry as a whole. Strategic partnerships with governments, she said, are crucial in building investor confidence.
“Projects in Indonesia must be truly competitive, whether in terms of investment returns, risk management, execution certainty, or ensuring projected outcomes can actually be realized,” Kathy explained.
ExxonMobil Indonesia President Wade Floyd cited the company’s 128-year partnership in Indonesia as a clear example of long-term collaboration delivering tangible results, including the Cepu Block, which now contributes around 30 percent of national oil production.“Our long history has been built on partnerships and collaboration. In my view, that is one of the reasons behind Indonesia’s success today,” Wade said.
At the same time, MedcoEnergi Director and Chief Operating Officer Ronald Gunawan said Indonesia already possesses many of the critical elements needed to attract investment, including attractive returns, business stability, and competitive fiscal schemes. “With faster execution, I am confident Indonesia can become a top-tier investment destination,” Ronald stated.
He added that successful project execution requires close cooperation not only among companies, but also with technology providers and supporting service partners. “With such collaboration, I believe Indonesia can become far stronger and more competitive,” Ronald concluded.