Both the Central Government and Regional Governments play crucial roles in ensuring the sustainability of the upstream oil and gas industry.
The Indonesian Petroleum Association (IPA) stated that government support is a crucial factor in maintaining the sustainability of the national upstream oil and gas industry amidst increasingly fierce global energy investment competition.
The IPA conveyed this message following the opening of the 50th IPA Convention and Exhibition (IPA Convex) on Wednesday (May 20, 2026). The presence of the Minister of Energy and Mineral Resources (ESDM), representing President Prabowo Subianto, was considered a demonstration of the government's commitment to strengthening the national upstream oil and gas sector.
Marjolijn Wajong, Executive Director of the IPA, expressed his appreciation for the government's commitment to collaboration between the government and business actors in the upstream oil and gas industry to achieve national energy security through increased exploration and accelerated development of discovered projects or fields. "The government referred to here is not only the central government but also regional governments," Marjolijn stated at the IPA Convex 2026 press conference on Thursday (May 21, 2026).
The IPA commended the government's commitment to improving the investment climate in the energy sector, including accelerating licensing and strengthening legal certainty. This step is a key requirement for the upstream oil and gas industry, which is known for its capital-intensive nature, high risk, and long-term investment cycle. "We always want to convey to the public that upstream oil and gas is a long-term, capital-intensive, and high-risk industry. This requires consistent policies so that potential investors and existing companies in Indonesia will have confidence in investing there," explained Marjolijn.
The IPA hopes the government can quickly show its commitment by creating consistent policies and acting fast at both the national and local levels, which will help speed up the growth of Indonesia's upstream oil and gas industry and support the country's energy security goals.
Teresita Listyani, Chairperson of the IPA, expressed her appreciation for the business players who entrusted IPA Convex 2026 as a venue for forging various important agreements. "These include the signing of Working Area (WK) contracts, announcements of WK offers, announcements of WK tender results, and several commercial agreements, such as PJBG, HoA, and JSA. This demonstrates that the upstream oil and gas industry is not in decline but is still moving to meet Indonesia's energy needs," said Teresita.
