Indonesia’s Foreign Affairs Ministry confirmed that PT Pertamina has begun discussions on upstream oil and gas cooperation in both countries. The talks target ownership stakes in offshore fields, not short-term supply contracts. That distinction matters: equity barrels lock in long-term flows and tie corporate growth directly to national energy security.
Grata Endah Werdaningtyas, Director General for American and European Affairs at the ministry, told reporters that equity participation would cut reliance on single-source imports. It would also reduce exposure to disruptions around the Strait of Hormuz. When Indonesia holds a stake in a producing asset, supply becomes structurally more secure.
Why Guyana and Suriname now?
The northern coast of South America has drawn global attention as a high-growth basin. According to projections presented by Indonesia’s Foreign Affairs Ministry, offshore output in the region is expected to reach around 200,000 barrels per day by 2028. For Pertamina, a presence there would broaden its barrel base well beyond mature domestic assets.
The move also supports Indonesia’s goal of lifting oil output, which still falls short of its 2026 state budget target. Pertamina already holds upstream assets overseas as part of an equity-based diversification strategy. However, Guyana and Suriname represent newer, faster-growing territory. Many international majors now treat this basin as a core growth area. That blend of mature and emerging assets could smooth portfolio risk over the medium term.
By contrast with spot-market purchases, equity positions in these fields would give Pertamina direct influence over production schedules and offtake terms. The strategic logic is straightforward.
How does this fit Indonesia’s broader Latin America push?
The energy initiative sits inside a wider diplomatic and commercial drive into Latin America and the Caribbean. According to figures presented by Indonesia’s Foreign Affairs Ministry, two-way trade between Indonesia and the region reached US$16.1 billion in 2025. Exports accounted for US$7.6 billion; imports totalled US$8.5 billion. That represents roughly 3 per cent of Indonesia’s total global trade — modest by global standards, but officials see considerable room to grow.
Jakarta is using the Indonesia–Latin America and the Caribbean (INA-LAC) Business Mission to convert that potential into concrete deals. The next edition is scheduled for Chile in October 2026, with energy and mining among the priority sectors. The event connects Indonesian corporates directly with Latin American policymakers and industry leaders, advancing negotiations already under way at government level.
A multi-commodity strategy takes shape
Foreign Ministry officials have framed Latin America cooperation as a way to strengthen supply chains across both hydrocarbons and critical minerals. As a result, Pertamina’s South America push is likely to sit alongside projects from Indonesian mining and processing firms. For investors, that signals a multi-commodity presence in the region, not simply a crude-buying exercise.
One senior Jakarta-based analyst put the shift plainly: ‘Pertamina’s interest in Guyana and Suriname shows Indonesia is moving from being a price-taker in global oil markets to an equity partner in emerging basins.’
The move mirrors broader strategies by Asian national oil companies seeking supply certainty. Indonesia has also updated its mining foreign-exchange rules in recent years to shape the terms of resource deals, as detailed in FurtherAsia’s coverage of Indonesia’s mining forex framework.
What should investors watch next?
Three signals warrant close attention. First, any confirmed farm-ins or production sharing contracts in Guyana or Suriname would materially reshape Pertamina’s reserve and production profile over the next decade. Second, strong INA-LAC 2026 outcomes could draw more Indonesian energy and mining capital into the region, opening joint-venture and offtake opportunities. Third, if South American equity barrels do materialise, Indonesia’s import exposure around the Strait of Hormuz would moderate — stabilising Pertamina’s margin and cash flow over time.
The next marker to watch is whether exploratory talks produce announced deals before or shortly after the Chile mission in October 2026.
Quick answers
Pertamina is in exploratory talks to acquire upstream equity stakes in offshore oil and gas fields in Guyana and Suriname. The goal is to secure long-term barrel supply and reduce Indonesia’s dependence on spot imports.
According to Indonesia’s Foreign Affairs Ministry, two-way trade between Indonesia and Latin America and the Caribbean reached US$16.1 billion in 2025, with US$7.6 billion in exports and US$8.5 billion in imports.
The next Indonesia–Latin America and the Caribbean Business Mission is scheduled for Chile in October 2026, with energy and mining listed among the priority sectors.
