The Indonesian government announced the opening of a rights tender for twenty one oil and gas exploration blocks last Friday. There are two gas concessions available that are located in Borneo and Sumatra.

The move is to strengthen the energy security of the largest economy in Southeast Asia. Aside from the shale blocks, there are seventeen offshore blocks located on the Eastern part of the Indonesian archipelago according to the Energy and Mineral Resources Ministry of Indonesia.

Indonesia is now seeking to improve on its output to meet its local energy needs due to the regulatory and other political issues that have kept investors at bay in its lucrative business market. 

The first round of bids would be accepted by the middle of June. 

In an interview wotj Reiters, Lukan Mahfoedz, the president of the Indonesia Petroleum Association said, "The national companies cannot cover the risks in the deepwater drilling in eastern Indonesia where one well costs US$200 million." He added at these costs, international oil company participation would be imperative.