Jakarta — The Indonesian Government, through the Directorate General of Oil and Gas (Ditjen Migas) under the Ministry of Energy and Mineral Resources (ESDM), has reaffirmed its commitment to positioning Papua as a strategic pillar of the country’s long-term energy security through sustainable upstream oil and gas development.
The Government’s focus is no longer limited to increasing production capacity, but also includes optimizing revenue-sharing mechanisms, implementing a 10 percent Participating Interest (PI) policy for regional governments, and strengthening the quality of human resources in Papua.
As of May 2026, there are 11 oil and gas working areas across Papua covering production, development, and exploration phases. Production areas are currently operated by BP Berau, Petrogas Besin, Petrogas Island Limited, and PT Pertamina EP. Meanwhile, development projects are being carried out by Genting Oil Kasuri, alongside exploration activities in areas such as Bobara, Semai Tiga, and Gaya.
The expansion highlights Papua’s growing role as one of Indonesia’s most strategic regions for future upstream oil and gas development.
Director General of Oil and Gas, Laode Sulaeman, stated that the success of Papua’s development depends heavily on collaboration among stakeholders, including the central government, local administrations, educational institutions, and industry players.
Speaking at the Executive Meeting on Development Direction for Mining-Producing Regions (Papuan Youth Education) held at JS Luwansa Hotel and Convention Center in Jakarta on Friday (May 8, 2026), Laode emphasized the importance of human capital development.
“The key to successful development lies in the strength of human resources both in the regions and at the national level. This collaboration is very positive and can become a benchmark for other provinces in the future. Papua’s future should not rely solely on the abundance of natural resources, but also on the quality of its human resources,” said Laode.
Papua currently produces approximately 14,000 barrels of oil per day (bopd) and 2,000 million standard cubic feet of gas per day (mmscfd). To further boost production, the Government is encouraging the reactivation of idle wells and the adoption of advanced technologies such as hydraulic fracturing (fracking), Enhanced Oil Recovery (EOR), and horizontal drilling in existing oil fields.
Beyond strengthening national energy resilience, the upstream oil and gas sector is also expected to generate direct economic benefits for Papua through the Revenue Sharing Fund (DBH) mechanism and the allocation of a 10 percent Participating Interest for regional governments.
“Through the DBH and 10% PI mechanisms, regional governments are also expected to reinvest oil and gas revenues into education and skills development for local communities. This potential is expected not only to strengthen national energy security, but also to encourage regional economic growth, job creation, and the development of local human resource capacity,” Laode added.
The sector has also contributed significantly to local employment opportunities. In BP Tangguh’s latest UCC Ubadari project, around 1,330 out of 4,018 workers — or approximately 33 percent — are Papuan workers, including 929 individuals directly recruited from the Bintuni and Fakfak regions.
The Government believes that industrial expansion in Papua must go hand in hand with local capacity building to ensure indigenous communities can play a leading role in regional development.
To support this objective, the Government is expanding partnerships with PEM Akamigas, the Oil and Gas Training Center (Pusdiklat Migas), and universities to strengthen vocational education and competency certification programs for Papuan youth.
“We hope the synergy between the central government, regional governments, universities, and the business sector can ensure that energy sector development delivers sustainable prosperity. The younger generation of Papua must become the main actors of development in their own land,” Laode explained.
He further expressed optimism that ongoing strategic upstream oil and gas projects in Papua would become key drivers of economic independence, sustainable development, and broader public welfare across the region.
