January 8, 2026 | 02:44 pm
TEMPO.CO, Jakarta - Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, said the government has met its oil lifting target set in the 2025 state budget, marking a rare achievement in the country’s oil and gas sector.
Speaking at a press conference at the ministry’s headquarters in Central Jakarta on Thursday, January 8, 2026, Bahlil said oil lifting in 2025 reached 605.3 thousand barrels per day, slightly exceeding the budgeted target of 605 thousand barrels per day.
Bahlil described the achievement as a significant milestone, noting that Indonesia has struggled to meet its oil lifting targets for more than a decade.
“The last time the lifting target in the state budget was achieved was in 2008, when production from the Banyu Urip field began, and again in 2015-2016. After that, it never happened,” he said.
Despite meeting the production target, Bahlil acknowledged that non-tax state revenue (PNBP) from the oil and gas sector declined in 2025.
He said PNBP from the sector amounted to Rp105.04 trillion, or 83.7 percent of the target of Rp125.46 trillion.
He attributed the shortfall to lower global oil prices. The government had assumed an Indonesian Crude Price (ICP) of US$80 per barrel in the 2025 state budget, but the average price during the year stood at around US$68 per barrel.
“Our lifting target was achieved, but prices declined,” Bahlil said. “Commodity prices are currently under pressure.”
Looking ahead, the Energy Ministry has set an oil lifting target of between 605,000 and 610,000 barrels per day for 2026. The projection is based on production levels recorded as of June 2025, when output had reached around 602,000 barrels per day, close to the 2025 state budget target.
“God willing, the government’s target of reaching 605,000 barrels per day by the end of December 2025 will be achieved,” Bahlil said.
He added that the government sees potential to increase oil production by up to 10 percent from current levels, provided efforts are made to manage natural production decline.
“In 2026, we will work to increase lifting while at the same time controlling the rate of production decline,” he said.
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