Indonesia was once the seventh member of OPEC, the Organization of the Petroleum Exporting Countries, after joining in 1962. Today, however, the situation has completely reversed.
In 2025, Indonesia's oil production is only around 600,000 to 610,000 barrels per day. This is far below domestic consumption, which has reached approximately 1.6 million barrels per day. The gap of nearly 1 million barrels each day must be covered through imports.
How did a country once known for its abundant oil resources become dependent on other countries for its oil supply?
OPEC's Seventh Member at Its Peak
When Indonesia joined OPEC in 1962, it was on the path to becoming a major oil producer. National oil production reached its first peak of 1.67 million barrels per day in 1976 and 1977.
After declining for several years, production recovered through secondary and tertiary oil recovery technologies, along with the discovery of new oil fields. This led to a second peak of around 1.6 million barrels per day in the mid-1990s.
However, the oil fields that supported both production peaks were already aging. Since the second peak in 1995, output has continued to decline as production from mature fields steadily decreased. No major new discoveries were made to replace them.
By 2007, Indonesia's oil production had fallen below 1 million barrels per day.
From Exporter to Suspending Its Membership
The turning point came in 2004. According to the U.S. Energy Information Administration (EIA), that was the first year Indonesia's domestic oil demand exceeded its own production. As a result, the country officially became a net oil importer.
As a consequence, Indonesia's membership in OPEC, an organization representing the interests of oil-exporting countries, was no longer relevant.
In January 2009, Indonesia suspended its OPEC membership. The decision was driven by rising domestic energy demand, declining output from mature oil fields, and limited investment to expand production capacity.
Indonesia briefly reactivated its membership in January 2016, but remained in the organization for only a year. On 30 November 2016, it suspended its membership again.
This time, the decision was made because Indonesia refused to participate in OPEC's production cuts, which were intended to raise global oil prices.
A Gap That Must Be Filled Every Day
Two decades after officially becoming a net oil importer, Indonesia's dependence on imported oil has only deepened. Throughout 2025, the country imported 55.33 million tons of oil and gas worth US$32.77 billion.
Its largest supplier was Singapore, with imports valued at US$9.72 billion. It was followed by Malaysia at US$5.31 billion, the United States at US$3.01 billion, Saudi Arabia at US$2.59 billion, and Nigeria at US$2.45 billion.
The figures continued to rise in 2026. In April 2026, Indonesia's oil and gas imports surged by 82.52 percent compared with April 2025. The increase was driven by a 67.49 percent rise in crude oil imports and an 87.76 percent increase in refined fuel imports.
Cumulatively, oil and gas imports from January to April 2026 reached US$12.93 billion. This was 17.58 percent higher than during the same period the previous year.
Pertamina currently produces around 420,000 barrels of oil per day. The company aims to increase production to 700,000 barrels per day in 2026. This supports the government's national target of producing 1 million barrels per day by 2030.
After taking over the Rokan Block from Chevron, Pertamina's contribution to Indonesia's crude oil production is expected to increase from around 40 percent to 60 percent.
Searching for Suppliers Around the World
To close the gap between production and consumption in the short term, the government has adopted emergency measures. On 30 April 2026, President Prabowo Subianto issued Presidential Regulation No. 26 of 2026 on the Procurement of Crude Oil, Fuel, and/or LPG for National Energy Security.
The regulation opens a new import channel through a Public Service Agency in the energy sector. It also formalizes a government-to-government energy procurement scheme.
This provides an alternative to relying solely on Pertamina, which has long faced restrictions due to its obligations to global bondholders, making it difficult to conduct transactions with parties subject to international sanctions.
The new regulation also paves the way for cooperation with Russia.
Following President Prabowo's meeting with President Vladimir Putin at the Kremlin on 13 April 2026, Russia announced that it was ready to supply crude oil to Indonesia through three of its energy companies: Rosneft, Ruschem Zarubezhneft, and Lukoil. The agreement is valid until December 2026.
Indonesia has also committed to importing US$4.5 billion worth of crude oil, US$7 billion worth of refined fuel products, and US$3.5 billion worth of LPG from the United States as part of a bilateral trade agreement.
Six decades ago, Indonesia was one of the founding members of the world's leading oil exporters' organization. Today, it must sign energy supply agreements with both Russia and the United States simply to keep the lights on and vehicles running at home.
