Indonesia's Oil Production Faces Challenges in Meeting 2025 Target

Current Production Status

Indonesia's oil production has reached 604,825 barrels per day (bpd) as of December 23, 2025, according to SKK Migas ¹

. This figure is still 175 bpd short of the 605,000 bpd target set in the 2025 State Budget. The production shortfall occurs despite earlier predictions that this year's target could be exceeded, with forecasts ranging between 606,000–607,000 bpd.

Operational Challenges

SKK Migas Head Djoko Siswanto attributed the production gap to various operational issues. Pipeline leaks and damage in several regions, including Aceh, North Sumatra, and ExxonMobil's pipelines, have significantly impacted daily production. These incidents have been identified as primary factors constraining the achievement of full production capacity.

Natural Gas Sector Challenges

Experts have highlighted that Indonesia's energy sector faces additional challenges in accelerating natural gas utilization. According to Abra Talattov from INDEF, three major issues are hindering progress: infrastructure limitations, supply uncertainties from upstream production, and changes in gas network financing schemes that are no longer supported by the state budget since 2023 ²

.

Implications for Energy Policy

The current production trends and challenges in both oil and gas sectors have significant implications for Indonesia's energy policy and Net Zero Emission target by 2060. The gap between production targets and actual performance in the oil sector, coupled with underutilization of natural gas, underscores the need for comprehensive infrastructure development and supply chain stabilization.