Oil and Gas Producing – Indonesia is located at the meeting point between the Australian continent, the Pacific Ocean, and the Southeast Asian tectonic plate. Almost all petroleum discoveries in Indonesia occur due to tertiary deposits (third layer) or at the base of tertiary volcanic rock units or lahars.


Petroleum in Indonesia from tertiary deposits


Indonesia has around 60 sediment basins where the 36 basins in the western region, 14 of which are oil producers as well as natural gas, have been optimally drained so that the oil fields in this region are “mature” (mature field).

5 Largest Natural Gas Producing Regions in Indonesia

In contrast, in the eastern region, there are 39 hydrocarbon-rich basins that have the potential to be explored through the second (pre-tertiary) and advanced (tertiary) production stages.


Indonesian Petroleum Producing Areas

About 75 percent of oil and gas exploration and production is carried out in the western part of Indonesia. The four oil-producing regions are Sumatra, the Java Sea, East Kalimantan, and the Natuna Islands. Meanwhile, the four main natural gas-producing regions consist of East Kalimantan, Arun in North Sumatra, South Sumatra, and the Natuna Islands.


Indonesia’s Strategic Natural Resources

Natural resources such as oil and natural gas are distributed unevenly in several regions in Indonesia. Oil and natural gas are classified as strategic non-renewable natural resources controlled by the state. Oil and natural gas are also called vital commodities that control the lives of many people and have an important role in the national economy.


The following is the distribution of natural resources in Indonesia such as oil, coal, and natural gas, as quoted from the book entitled Definitely Can Geography for Class XI SMA / MA by the Ganesha Operation Team:


Crude oil

Petroleum is a non-renewable natural resource. Petroleum has benefits that are vital to human life. This is because it functions as a fuel or energy source.


The results of petroleum processing can be grouped into 4 types, namely fuel oil for example kerosene, premium, and aviation fuel, non-oil fuels such as asphalt, paraffin and lubricant/oil, LPG (LPG / liquid petroleum gas), and petrochemicals for example pesticides, herbicides, and fertilizers.

  1. The islands of Sumatra, namely in Lhokseumawe and Peureulak (Aceh), Tanjung Pura (North Sumatra), Sungai Pakning and Dumai (Riau), as well as Plaju, Sungai Gerong, and Muara Enim (South Sumatra).
  2. Java Island, namely in Wonokromo, the Brantas River delta (East Java), and Majalengka and Jatibarang (West Java).
  3. Kalimantan Island is located in Balikpapan, Tarakan Island, Bunyu Island, East Kalimantan as well as Amuntai, Tanjung, and Rantau (South Kalimantan).
  4. Maluku is on Seram Island.
  5. Papua, there are in Klamono, Sorong, and Babo.

Indonesia’s Largest Nickel Reserves Area in Southeast Asia


Coal is a non-renewable natural resource that produces energy. Coal plays a very important role in human life. Coal is used for industrial purposes, steam power plants, cement burning, limestone, and roof tiles.


Coal producing areas in Indonesia include Bukit Asam, which is centered in Tanjung Enim in South Sumatra, and Kota Baru, which is centered on Pulau Laut (South Kalimantan).

In addition, in the Berau River Valley, which is centered in Samarinda (East Kalimantan), and Ombilin, which is centered in Sawahlunto (West Sumatra).


Natural gas

Apart from petroleum, the non-renewable natural resource that produces energy is natural gas. Natural gas can be used as gas fuel for transportation such as buses, light industrial fuels, and raw materials for the fertilizer industry. Natural gas-producing areas in Indonesia include Arun (Aceh), Bontang (Kalimantan), West Java, North Sumatra, and South Sumatra.