Indonesia pursues US technology to lift crude oil production capacity

Indonesia is turning to the United States for technological expertise to enhance its crude oil production capacity amid efforts to increase energy output in the coming years.

Energy and Mineral Resources Minister Bahlil Lahadalia said the country aims to raise crude oil lifting to 612,500 barrels per day in 2027, a modest increase from the projected 610,000 barrels per day in 2026. The incremental targets reflect Jakarta's strategy to stabilize and gradually expand domestic oil production.

The push to acquire US technology underscores Indonesia's recognition that advancing its petroleum sector requires modern extraction and processing capabilities. As one of Southeast Asia's largest oil producers, Indonesia has faced challenges maintaining and growing output from mature oil fields.

The initiative aligns with Indonesia's broader energy strategy, which balances crude oil production with investments in renewable energy and carbon market mechanisms. The country has simultaneously been expanding incentives for carbon markets while exploring new economic partnerships in the region, including collaborations with Timor-Leste on potential energy development.