Oil and gas projects in Riau Islands fuel growth, jobs, and regional resilience
The Riau Islands (Kepri) are emerging as Indonesia’s frontline of energy development, where upstream oil and gas projects are driving economic growth, boosting jobs, and strengthening local industries.
Oil and Gas Drive Regional Growth
Kepri’s economy has consistently outpaced Indonesia’s national average, with growth at 5.20% in 2023 and 5.16% in Q1 2025. A key contributor is the resurgence of upstream oil and gas (migas) operations. According to SKK Migas Sumbagut Head C.W. Wicaksono, the operation of the Forel and Terubuk fields in May 2025 marked a turning point, adding around 30,000 BOEPD (barrels of oil equivalent per day) and creating over 2,300 jobs, including 1,386 at Batam’s shipyards.
National and Local Impact
President Prabowo Subianto inaugurated the Forel and Terubuk projects on May 16, 2025, calling them a milestone for Indonesia’s energy independence. He emphasized that self-sufficiency in energy would save billions of U.S. dollars annually. The projects, located in the South Natuna Sea Block B, involve 16 offshore platforms, three subsea fields, and two FPSOs—Marlin Natuna and Belanak—converted locally in Batam.
Multiplier Effect Across Communities
The benefits extend beyond offshore platforms. In Anambas, local workers now hold key roles as operators and foremen. Rising household incomes stimulate demand for food, lodging, and services, while small businesses thrive. CSR initiatives led by SKK Migas and its contractors provide scholarships, fishing gear, women’s entrepreneurship support, and training in welding, safety, and heavy equipment operations. A CSR forum in Anambas ensures programs are well-coordinated and community-driven.
Fiscal Contributions and Regional Ownership
Oil and gas revenues strengthen local budgets. In 2025, Natuna received more than IDR 185 billion (≈ SGD 14.8 million) in revenue-sharing funds, of which IDR 84 billion (≈ SGD 6.7 million) came directly from migas. Kepri’s regional enterprises also secured a 10% Participating Interest in the Northwest Natuna Block, ensuring direct financial returns from resource exploitation.
Batam as Industrial Hub
Batam is cementing its role as a national hub for energy-related industries. The city houses Indonesia’s first seamless pipe factory, producing 30,000 tons annually, with a target of 70,000 tons by late 2025. Batam’s shipyards have also completed the country’s first fully local tanker-to-FPSO conversion, highlighting the capacity of Indonesian labor and technology.
Building Energy Independence and Prosperity
From Natuna to Batam, upstream oil and gas operations are not only boosting production but also enhancing industrial competitiveness, strengthening fiscal capacity, and empowering coastal communities. As President Prabowo noted, energy independence is a pillar of national strength, and Kepri’s momentum positions it as both a growth engine and a strategic frontier for Indonesia’s future.
The oil and gas sector in Kepri demonstrates how resource projects can generate layered benefits—from jobs and education to industrial development and fiscal resilience. For Indonesians, it represents a path toward energy security and shared prosperity. For Singaporeans and the wider region, it signals a stronger, more resilient neighbor with growing industrial capacity and strategic importance.
Sources: Batamnews (2025) , Gokepri (2025)
Keywords: Oil And Gas, Riau Islands, Economic Growth, Natuna, Batam, SKK Migas
