Caught Between a Weak Rupiah and US$100 Crude: How Long Can Indonesia’s Energy Budget Hold?
Sep 30, 2026
Similar Article
FEALING: Free Medical Check-Up Event Promotes Health Awareness
In a bid to increase awareness on the importance of health, the Community Outreach Division SPE ITS SC has taken the initiative to organize a medical check-up event called "FEALING (Fun Healing)". The event has successfully conducted in collaboration with the Asian Medical Students' Association (AMSA) Universitas Airlangga. The PIC of the event Jonathan Erland Sihotang explained that the event comes at a time when health awareness is increasingly crucial, especially with the transition from the pandemic era. People overlook the fundamental and essential aspects of health, such as lack of exercise, consuming unhealthy food with high levels of sugar, and barely doing medical check-ups. "Those behaviors will cause an increase in the prevalence of hypertension and any of the health issues among people our age or actually affect people of all ages,” Jonathan explained. Despite the importance of health, many people still underestimate its significance, particularly in developing countries where healthcare can be costly. Therefore, the Community Outreach Division has taken the initiative to provide free medical check-ups for those who cannot afford them. “Conducting this event is also in line with Sustainable Development Goal 3, which aims to ensure healthy lives and promote well-being for all ages,” Jonathan added. According to Jonathan, FEALING which took place on Sunday, 13th November 2022 from morning to afternoon at Taman Harmoni Keputih in Surabaya, provided a range of medical check-ups including blood sugar, tension, and uric acid tests. "We hope to accommodate those who are underprivileged, to do medical checkups for free and increase the awareness of local residents about the importance of health." Jonathan said. The health check-up event at Taman Harmony was a great success, with a majority of elderly participants from the surrounding area. Within just four hours, the target of 100 participants was achieved due to the overwhelming response, with most of them coming in groups. "I am so grateful for this free health check-up. It's an opportunity for us to monitor our health without spending any money," said one of the participants, who was delighted with the initiative.The Community Outreach Division and AMSA-Unair believe that events like FEALING will increase health awareness in the local community and ultimately lead to healthier lifestyles. The hope is that the event will inspire more organizations to take similar initiatives in promoting health and well-being in the community. "I am thrilled to see such an enthusiastic response from the community. It shows that people are taking their health seriously," Jonathan concluded. By: Tyara Novia
ExxonMobil’s US$15 Billion Bet: Can It Change Indonesia’s Energy Future?
An investment of US$15 billion has been made by ExxonMobil Corporation to establish a petrochemical refinery and carbon capture and storage (CCS) in Indonesia. This massive commitment of over Rp239 trillion aims to promote sustainable energy in the country by using an advanced technology to capture carbon dioxide (CO2) from industrial sources and store it underground. Carole Gall, President Director of ExxonMobil Indonesia, has underlined the corporation’s commitment in supporting environmental sustainability, including in achieving Indonesia's net-zero emission goals.Indonesia’s Minister of Investment and Downstream Industry, Rosan Roeslani, stated that ExxonMobil’s initiative was inspired by British Petroleum’s (BP) recent US$7 billion investment in the Tangguh Ubadari, Carbon Capture Utilization & Storage (CCUS), and Compression—or Tangguh UCC—project in Bintuni Bay, West Papua. This project is scheduled to start in 2028 and will include the development of the Ubadari gas field, the installation of CCUS and exhaust gas recirculation (EGR) at the Vorwata Field, and the improvement of the Tangguh LNG facilities with onshore compressors.While ExxonMobil's investment is twice that of BP's, both efforts share a common goal to cut greenhouse gas emissions and help Indonesia in transitioning to a more sustainable future. By implementing CCUS and EGR technologies, this project represents an important step toward increasing the country’s capacity for clean energy production. As more details of ExxonMobil's plans come to light, all eyes will turn to see how this investment would affect Indonesia's energy future.As the spotlight turns toward the execution of ExxonMobil's plans, this unprecedented investment holds the promise of reshaping Indonesia’s energy landscape. By fostering innovation, reducing environmental impact, and enhancing energy production capacity, ExxonMobil's CCS project could serve as a cornerstone for Indonesia's sustainable energy future. The successful implementation of this initiative will not only reinforce Indonesia's position as a key player in the global energy transition but also inspire other nations to follow suit in prioritizing sustainability and environmental stewardship
Pertamina Acquires 24.5% Stake in Petronas Bobara Deepwater Block, Strengthening Indonesia–Malaysia Energy Cooperation
In a symbolic moment of regional energy cooperation, Indonesia’s state-owned energy giant Pertamina has taken a major step into the ultra-deepwater frontier. Through its upstream arm PT Pertamina Hulu Energi (PHE), the company has acquired a 24.5% participating interest from Petroliam Nasional Berhad (Petronas) in the Bobara Block, located in the remote deep waters off West Papua.The deal, sealed during the 47th ASEAN Summit in Kuala Lumpur on October 27, 2025, marks more than just a transaction, it signals a growing energy partnership between two Southeast Asian powerhouses. The Farm-Out Agreement (FOA), signed between PHE Bobara and Petronas E&P Bobara Sdn. Bhd., formalizes Pertamina’s entry into the Bobara Production Sharing Contract (PSC), alongside Petronas and TotalEnergies.For Pertamina, this move represents both strategic expansion and symbolic diplomacy. It not only strengthens the company’s position in frontier exploration but also underscores Indonesia’s commitment to regional energy collaboration amid the global push for sustainable growth.“This signing is not merely a contractual milestone but a tangible reflection of the Indonesia–Malaysia energy partnership,” said Pertamina President Director Simon Aloysius Mantiri. “It demonstrates complementary capabilities and a shared responsibility to enhance regional energy security and drive sustainable development.”Mantiri’s remarks resonated with the broader theme of the ASEAN Summit partnership for resilience. He also expressed confidence that this momentum could open new doors for Pertamina to expand in Malaysia, eyeing future opportunities such as operatorship in the Balingian PSC and other prospective offshore blocks.Meanwhile, PHE President Director Awang Lazuardi described the Bobara partnership as a milestone built on trust and shared vision.“The Bobara PSC aligns perfectly with PHE’s strategic focus exploring and developing new opportunities in frontier areas,” Lazuardi explained. “It’s a step forward that blends technical excellence with regional collaboration.”Beyond exploration, PHE continues to reinforce its Environmental, Social, and Governance (ESG) commitments across its operations. The company implements a Zero Tolerance on Bribery policy under the ISO 37001:2016-certified Anti-Bribery Management System (SMAP) , a framework ensuring transparency and accountability in every corporate move.As energy dynamics shift globally, the Bobara partnership stands as a testament to how regional cooperation can shape a more secure and sustainable energy future. With Indonesia and Malaysia deepening ties in the energy sector, the deal also reflects a broader transformation, where collaboration, not competition, fuels progress beneath the vast waters of the Pacific.
“The Rise and Fall of LNG in the Oil and Gas Industry and Its Impact on Energy Security”
What is LNG?Liquefied natural gas (LNG) is natural gas that has been reduced to a liquid state, through a process of cooling. LNG is odorless, colorless, non-toxic, and non-corrosive, but hazards include flammability after vaporization into a gaseous state, freezing, and asphyxia. It is typically 85-95% methane, which contains less carbon than other forms of fossil fuels, and also contains tiny amounts of ethane, propane, butane, and nitrogen. Why does LNG matter to energy security?In order to solve the energy trilemma—which means finding a balance between affordability, environmental sustainability, and energy security—LNG is essential. Since it effectively removes pollutants like SOx and NOx, liquefied natural gas (LNG) is acknowledged as a more environmentally friendly fuel substitute that helps to lower greenhouse gas emissions. It is the cleanest burning hydrocarbon that provides a clean solution to industrial sectors that need a high calorific value and the most difficult to electrify. It also can be used in a variety of industries, including power generation, manufacturing, and transportation. Natural gas power generation emits 45% to 55% less greenhouse gasses than coal. In developing economies, it will replace traditional biomass in heating and cooking which helps to reduce the health impacts of localized emissions from other fuels. As a fuel for heavy-duty road transportation, LNG has also demonstrated a notable decrease in emissions (both greenhouse and particulate) when compared to alternative fuels, thus helps diversify the fuel mix and lower air pollution. The benefits of using LNG in the oil and gas industry and its role in clean energy transitionsThe oil and gas industry is playing an important role in the energy transition by providing affordable and reliable energy. The industry is working through many cross-sector initiatives on the scale-up of quantification and resolution of methane emissions. An increasing number of oil and gas companies are part of the growth in the renewable energy sector investing in and producing energy through renewable technologies, in particular, wind, solar power, and biofuels. By reducing greenhouse gas emissions from operations through energy efficiency, flare reduction, and methane management, as well as increasingly powering operations with low-carbon or renewable energy sources, the oil and gas industry can considerably contribute to a net zero future. And through the increasing adoption of improved engine-fuel system efficiencies and the development of low-carbon mobility technologies like electric vehicles, biofuels, liquefied natural gas, ammonia, and hydrogen fuel cells, companies are also helping their customers to reduce their emissions.Strategic deal trends and projects in LNG in oil & gas industryGlobal demand for LNG is expected to continue growing. According to McKinsey, LNG demand is projected to grow by 0.5 percent from 2035 to 2050, with more than 200 million metric tons of new capacity required during this period. The share of LNG in the global gas supply is expected to increase from 13% to 23% by 2050, as it meets demand growth and replaces declining pipeline and domestic gas. The urgency to meet this demand is intensifying due to growing energy demand from regions such as Asia and the declining supply of domestic gas and the interruption of piped supply (such as Russian piped gas supply to Europe).