TEMPO.CO, Jakarta - Indonesia's Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that Indonesia and Malaysia are still exploring the possibility of jointly developing the East Ambalat oil and gas block, located on the border between the two countries.
"This is not final; it's still under review. I repeat, this is still under review," Bahlil stated when met on the sidelines of the Energy and Mineral Festival held in Jakarta on Wednesday, July 30, 2025.
Geologically, the East Ambalat Block is located in the Tarakan Basin, in the deep sea waters of North Kalimantan, approximately 80 kilometers east of Tarakan City, with a sea depth of around 2,000 meters, and covers an area of 4,735 square kilometers. This sea block contains oil and gas potential estimated to last for the next thirty years.
Bahlil highlighted the Ambalat region, which is currently claimed by both Indonesia and Malaysia. Although Ambalat has oil and gas reserves, the two parties cannot manage the area due to ongoing disputes.
Therefore, one of the points discussed between Indonesia and Malaysia was how the two countries could collaborate to manage the East Ambalat block for the common good.
If Indonesia and Malaysia eventually reach an agreement to manage the East Ambalat oil and gas block, Bahlil stated that Pertamina and Petronas would definitely manage it.
"Of course, if it's done between countries, there will be cooperation between Malaysian and Indonesian state-owned enterprises, with representatives for the oil and gas sector being Petronas from Malaysia and Pertamina from Indonesia," Bahlil said.
Previously, Foreign Minister Sugiono stated that the plan for Indonesia and Malaysia to jointly manage the border area in Ambalat is still being explored by the two countries, so the issue was not specifically discussed at the 13th Indonesia-Malaysia Annual Consultation in Jakarta on Tuesday, July 29, 2025.
Sugiono continued, explaining that in principle, both countries understand the enormous potential of the border area in Ambalat, and therefore, cooperation is needed to optimize this potential, including the maritime and fisheries sectors.
Indonesia and Malaysia, Sugiono said, are still discussing the plan, and once finalized, the technical details will be further discussed by the relevant ministries. However, Sugiono could not share details at this time, as discussions are still in the early stages.
Regarding this matter, PT Pertamina Hulu Energi stated its readiness to develop the East Ambalat oil and gas block, but is currently awaiting government approval.
Editor's Choice: Minister Explains Why Indonesia, Malaysia Opt for Joint Ambalat Block Management
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