Indonesia's Strategic Economic Moves for 2026: Energy and Food Security

Boosting Oil Production Targets

The Indonesian government is focusing on reversing the declining trend in national oil and gas production through significant investment attraction. The Ministry of Energy and Mineral Resources (ESDM) has set an ambitious target of achieving 610,000 barrels per day of oil production in 2026, representing a substantial increase from the 2024 level of around 580,000 bph ¹

. This target is part of a broader strategy to reach 1 million barrels per day by 2030, requiring an average annual increase of approximately 100,000 bph ²

Source 2

https://finance.detik.com/energi/d-8282883/bidik-1-juta-barel-per-hari-produksi-minyak-ri-ditarget-naik-segini

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Challenges in Oil Production

Achieving these targets will be challenging due to the dominance of mature fields, limited new projects, and licensing complexities. As of late November 2025, oil production stood at around 610,000 bph, while SKK Migas reported a production level of 604,825 bph up to December 23, 2025, still slightly below the 2025 APBN target of 605,000 bph ¹

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Strengthening Food Security Measures

In a parallel effort to enhance national food security, the government has decided to significantly increase strategic food reserves for 2026. The rice reserve will be increased to 4 million tons from the previous 3 million tons, while corn reserves will be boosted to 1 million tons from 300,000 tons ⁴

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Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8282704/pemerintah-naikkan-stok-beras-jadi-4-juta-ton-jagung-1-juta-ton-di-2026

. These measures are designed to support the expanded 'Makan Bergizi Gratis' (Free Nutritious Meal) program and maintain price stability through the Stabilitas Pasokan dan Harga Pangan (SPHP) initiative.

Rationale Behind Increased Food Reserves

The decision to increase food reserves was driven by the need to manage both supply and demand shocks. With the expansion of the 'Makan Bergizi Gratis' program targeting tens of millions of recipients, the demand for staple foods and animal feed is expected to rise significantly. The increased corn reserves are particularly crucial for ensuring adequate animal feed supply to support the country's poultry and livestock industries ⁵

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Coordinated Government Approach

These strategic moves demonstrate a coordinated government effort across multiple ministries and agencies. The decisions were made during a high-level coordination meeting attended by various ministers and officials from the Ministry of Agriculture, Ministry of Trade, and key state-owned enterprises like Perum Bulog ³

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