Digging for a Petroleum Fund

5 hours ago 2

September 3, 2026 | 09:40 am

TEMPO.CO, Jakarta - The target may be ambitious, but reality can be disappointing. That is what has happened with oil and gas lifting—the volume of crude and gas produced by drilling operations and ready for sale—this year. According to Djoko Siswanto, Chief of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the government set a target of 610,000 barrels of oil per day in the 2026 State Budget. But from January through July this year, average lifting was only 578,000 barrels per day.

Djoko cited several obstacles hampering efforts to boost production. There had been operational disruptions at several major fields, he said, while output from aging fields continued to decline. The Rokan Block in Riau, operated by Pertamina Hulu Rokan, has a production target of 163,000 barrels per day. In reality, output had reached only 133,000 barrels per day because of a disruption to a pipeline owned by Transportasi Gas Indonesia.

At the Cepu oil and gas field, the problem is different. Production from the field on the border of Central and East Java, which for years has been one of the mainstays of national oil output, is beginning to decline because of natural factors. “We are trying to keep production from falling further,” Djoko said at a hearing with House of Representatives Commission XII, which oversees the energy sector, at the Parliament Complex in Senayan, Jakarta, on Wednesday, August 26, 2026.

SKK Migas, Djoko explained, has been trying various ways to make up the shortfall. One is recovering oil that has settled at the bottom of storage tanks, known as dead stock. SKK Migas is also targeting small oil and gas wells operated by local communities, hoping they can contribute 5,000 barrels per day by the end of the year.

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