Jakarta (Indonesia Window) – The expenses for energy exploration in Indonesia is only one percent of that spent by world-class mining companies, according to S&P Global Market Intelligence.

"Over the past 20 years, the total exploration cost in Indonesia is only one percent of that expended by world-class mining companies," Indonesian Minister of Energy and Mineral Resources Arifin Tasrif stated at the virtual launch of the book An Introduction into The Geology of Indonesia by Prof. Dr. RP Koesoemadinata on Monday (Nov 16).

According to Arifin, the exploration activities in the country have not been massively conducted, and that makes the expenses low.

In order to boost exploration activities in Indonesia, the government issued Regulation of the Minister of Energy and Mineral Resources Number 12 of 2020 concerning the Oil and Gas Cooperation Contract Forms.

The regulation also provides flexibility regarding the cost recovery or gross split profit-sharing contract.

"We need massive exploration. Currently our oil and gas production reserves continue to decline. Likewise, explorations should be carried out in mineral and coal sub-sectors," the minister said.

He added that the government continues to boost giant discovery of oil and gas blocks in 68 potential oil and gas basins throughout Indonesia.

Data from the ministry show that currently Indonesia still has petroleum reserves of 3.77 billion barrels; natural gas 77.3 trillion cubic feet; and coal reserves of 37.6 billion tons.

Reporting by Indonesia Window