Indonesia, Brunei explore oil supply, renewable energy cooperation

By Romel S. Gurky

Indonesia and Brunei Darussalam are exploring broader cooperation in the energy sector, including potential crude oil supply arrangements and collaboration in renewable energy development, as both countries seek to strengthen regional energy security amid shifting global energy dynamics.

Energy and Mineral Resources Minister Bahlil Lahadalia held bilateral talks with Brunei’s Deputy Minister (Energy) at the Prime Minister’s Office, Mohamad Azmi Mohd Hanifah, on the sidelines of the Indo Pacific Energy Security Ministerial and Business Forum in Tokyo on Sunday.

The discussions focused on strengthening oil supply resilience while exploring opportunities for cooperation in renewable energy and energy diversification.

Brunei expressed interest in learning from Indonesia’s experience in developing a diversified power generation mix, particularly renewable energy sources. The country currently relies heavily on natural gas for electricity generation, with about 99 percent of its power supply derived from gas-fired plants.

“This is a golden momentum for regional collaboration. Brunei sees that Indonesia has taken more advanced and structured steps in developing power generation from various energy sources, while Brunei still relies on gas for nearly all of its electricity,” Bahlil said after the meeting.

According to the minister, Brunei plans to significantly expand its national power capacity, targeting an increase of about 4 gigawatts (GW) from the current 1 GW, which would raise its installed capacity roughly fivefold.

The talks also covered potential oil supply cooperation. With Brunei’s crude oil production estimated at around 100,000 to 110,000 barrels per day, Indonesia is considering the possibility of importing crude from the sultanate as part of efforts to diversify supply and maintain domestic energy security.

“Exploring crude oil imports from Brunei is one of the strategic options we are considering to ensure stable national energy supplies,” Bahlil said.

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Brunei also showed interest in technologies used by Indonesian state energy company Pertamina, particularly enhanced oil recovery (EOR) methods used to boost production from mature oil fields.

Bahlil said Indonesia is ready to facilitate technical cooperation between Brunei and Pertamina to share expertise and operational experience in EOR technology.

Azmi noted that Brunei has already implemented water flooding techniques and is interested in advancing to chemical flooding methods such as EOR to improve oil recovery.

“We are interested in Indonesia because EOR technology has already been applied there. We have used water flooding and believe we can learn from Indonesia to operate EOR,” he said.

Indonesia also encouraged broader investment opportunities for Brunei through the Indonesian Economic Development Corridor (IEDC), inviting participation in power infrastructure projects, particularly in remote areas with significant natural resource potential but limited energy infrastructure.

The cooperation framework is also expected to include capacity-building initiatives covering upstream oil and gas activities and training for renewable energy auditors.

The meeting at the Tokyo forum signals a growing strategic partnership between Indonesia and Brunei, potentially spanning oil supply cooperation, green hydrogen development and energy infrastructure investment in remote regions, while strengthening regional energy security across Southeast Asia.

Editing by Reiner Simanjuntak