Indonesia Oil & Gas Market Report 2026-2031 | Indonesia's Rising Middle Class Fuels Robust Oil & Gas Demand; Market to Achieve USD 18.81 Billion by 2031

Indonesia's oil & gas sector presents strong opportunities in offshore growth, carbon capture, rising domestic demand, and digital advancements

Dublin, Jan. 22, 2026 (GLOBE NEWSWIRE) -- The "Indonesia Oil and Gas - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering. The report is segmented by Sector (Upstream, Midstream, and Downstream), Location (Onshore and Offshore), and Service (Construction, Maintenance and Turn-Around, and Decommissioning), with market sizes and forecasts provided in USD.

The Indonesia Oil and Gas market is poised for substantial growth, accelerating from USD 13.88 billion in 2025 to USD 14.6 billion in 2026, and is projected to reach USD 18.81 billion by 2031 with a 5.18% CAGR between 2026 and 2031. This promising trajectory reflects a strategic pivot from onshore basins to lucrative offshore ventures, encompassing carbon capture initiatives and embracing digital transformation.

Increased domestic demand, favorable production-sharing agreements, and significant deep-water discoveries are invigorating capital investment into exploration while maintaining a steady flow of service revenues from essential infrastructure maintenance. Pertamina, holding 60% of national output, faces renewed competition from international oil companies leveraging advanced recovery technologies and an escalating focus on carbon capture, utilization, and storage (CCUS) hubs, designed to extend field life and mitigate lifecycle emissions.

Offshore, new discoveries in the Natuna Sea, Abadi Masela, and Mahakam Delta have reshaped project economics, with Floating Production Storage and Offloading (FPSOs) and subsea tiebacks expediting time-to-first gas. Additionally, small-scale LNG solutions are expanding market access to remote islands and mining enclaves.

Robust Domestic Demand from Rising Middle Class

Driving this growth is Indonesia's burgeoning middle class, set to increase gasoline, diesel, and petrochemical consumption. Daily crude demand is anticipated to surge to 1.8 million barrels by 2030, up from approximately 1.6 million in 2025. Java's urbanization above 60% fuels transportation fuel consumption despite efficiency initiatives, while higher personal incomes boost demand for plastics and packaging. Natural gas demand is expected to hit 12 Bcf/d by 2030, facilitated by combined-cycle power plants balancing renewable intermittency. Fuel subsidy reforms channel savings into infrastructure projects, further bolstering hydrocarbon demand.

Government Push for 1 Million bbl/d Crude and 12 Bcf/d Gas by 2030

The government agency SKK Migas targets producing 1 million bbl/d of oil and 12 Bcf/d of gas to reduce import reliance, currently fulfilling 60% of refined-product needs. Initiatives include expediting approval for 127 blocks, providing fiscal incentives for enhanced recovery, and integrating digital surveillance to enhance output from marginal fields. Key projects like Abadi LNG and Tangguh expansion anchor gas supply, while steamflood and chemical EOR strategies extend production at Minas and Duri.

Renewable-Energy Build-Out and EV Adoption

Indonesia's ambition for 23% renewable energy by 2025 and net-zero emissions by 2060 drives investment in solar, wind, and geothermal projects totaling 10 GW. EV assembly incentives attract global OEMs to West Java, supporting a national target of 2 million battery electric vehicles by 2030. Although gas remains critical for bridging renewable gaps, growing EV infrastructure may curb gasoline demand eventually, yet the immediate impact appears moderate due to existing infrastructure and pricing dynamics.

Other Market Influences

The market also examines LNG export opportunities to North-East Asia, Gross-Split PSC incentives enticing IOCs, and challenges from declining production in ageing basins.

Segment Analysis

In the upstream sector, Indonesia's market size was USD 10.01 billion in 2025, making up 72.10% of total revenues, and is set to grow at a 5.55% CAGR until 2031. Major investments include BP 's USD 7 billion Tangguh UCC and Inpex's USD 20 billion Abadi LNG projects. Gross-split PSC reforms streamline operations, guaranteeing financial transparency and attracting industry leaders like Chevron and Harbour Energy.

Digital solutions play a pivotal role, with Pertamina and FPT Software AG implementing systems reducing unscheduled downtime by 15%. Midstream improvements, including new pipelines from Central Sulawesi to Java, optimize logistics while downstream expansion at Tuban refinery capitalizes on heavier crude grades to produce high-margin olefins.

Key Topics Covered

1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Crude-Oil Production & Consumption Outlook
4.8 Natural-Gas Production & Consumption Outlook
4.9 Installed Pipeline Capacity Analysis
4.10 Unconventional Resources CAPEX Outlook
4.11 LNG Terminal Capacity Outlook
4.12 Porter's Five Forces
4.13 PESTLE Analysis

5 Market Size & Growth Forecasts
5.1 By Sector
5.2 By Location
5.3 By Service

6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles

7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-need Assessment

A selection of companies mentioned in this report includes, but is not limited to:

• Pertamina
• Chevron
• Exxon Mobil
• Royal Dutch Shell
• BP
• Petronas
• ConocoPhillips
• Medco Energi
• Eni
• TotalEnergies
• Repsol
• Sinopec
• PGN
• Chandra Asri
• Inpex
• Mubadala Energy
• Harbour Energy
• Conrad Asia Energy
• PT Connusa Energindo
• CNOOC

For more information about this report visit https://www.researchandmarkets.com/r/16suff

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