Indonesian Petroleum Industry and Development: A Centennial Survey and Future Prospects

The contribution of oil and gas to development is a classic debate among scholars. Some believe that oil and gas are positively related to development, while others believe the opposite. This study examines the contribution of oil and gas to development in Indonesia. Historical analysis of long-term data series, extracted from statistical documents since the colonial era, shows a positive relationship between oil and development in Indonesia. Although its contribution fluctuates, oil and gas have contributed to growth and welfare. However, the future of Indonesia’s oil and gas industry is at stake. Declining reserves and production and shrinking upstream investment due to declining competitiveness amid the green energy transition agenda threaten the sustainability of Indonesia’s oil and gas industry in the future.