Indonesia upstream – From momentum to execution

(Originally published on July 22, 2026)

Indonesia’s upstream story has changed meaningfully over the last few years. At the start of 2024, the focus was on recovery from some of the more difficult policy decisions of the previous decade, including the effective preference for Gross Split contracts and uncertainty around expiring PSCs. By early 2025, the question was whether a more pragmatic investment environment could translate into exploration, project approvals and production.

The position today is more encouraging. Indonesia has brought new fields onstream, taken final investment decisions on several important projects and delivered another series of material gas discoveries. The question is no longer simply whether the country can rebuild upstream momentum, but whether the government, contractors and domestic buyers can execute these projects quickly enough to produce a sustained change in the supply outlook.