Eni to Invest $10 Billion in East Kalimantan, Indonesia

Strategic Insights -

Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia announced that Italian energy company Eni is set to invest $10 billion in East Kalimantan Province, Indonesia. This investment will be aimed at developing offshore natural gas fields in the Makassar Strait area, specifically in the Jangkrik and Merakes blocks. The production from these fields is expected to meet both domestic and export market demands. The investment is considered a significant contribution to regional economic growth and will also create job opportunities for both local and national workers.

Key Takeaways:

  • Eni, a European oil company, will invest $10 billion in East Kalimantan Province, Indonesia, to develop offshore natural gas fields in the Makassar Strait area.
  • The investment will focus on the Jangkrik and Merakes blocks, with production expected to meet both domestic and export market demands.
  • The project is expected to begin production in 2027 and will contribute to regional economic growth, creating job opportunities for both local and national workers.
  • The Indonesian government plans to encourage Eni to allocate a portion of its participating interest (PI) to the East Kalimantan provincial government, increasing the province's share of revenue.
  • The investment is seen as a positive sign for the region, despite global economic challenges and geopolitical tensions.
  • President Prabowo Subianto's diplomacy has led to a reduction in US import tariffs on Indonesian goods from 32 percent to 19 percent.

Statistics:

  • $10 billion: The total investment by Eni in East Kalimantan Province, Indonesia.
  • Rp150 trillion: The approximate value of the investment in Indonesian Rupiah.
  • 2027: The expected year of production from the project.
  • 70: The number of countries where Eni operates.
  • 1953: The year in which Eni was established.
  • 32-19: The reduced US import tariffs on Indonesian goods due to President Prabowo Subianto's diplomacy.

Sources:

  • "Eni to Invest $10 Billion in East Kalimantan", Antara News Agency, July 20, 2025 (Antara News Agency)
  • "Italian Energy Company Eni to Invest in East Kalimantan", ANTARA, July 19, 2025 (ANTARA)