Indonesia Energy Corporation Limited (INDO): History, Ownership, Mission, How It Works & Makes Money

How is Indonesia Energy Corporation Limited navigating the complex energy landscape, particularly after generating revenues nearing **$5.1 million** in the first three quarters of 2024 while continuing significant exploration activities? This focused energy company concentrates its efforts on oil and gas exploration and production within Indonesia, notably managing the producing Kruh Block, which yielded an average of approximately **580 net barrels** of oil per day in the third quarter of 2024, alongside its Citarum Block exploration venture. What underpins their operational strategy, and precisely how does INDO convert these Indonesian resources into financial returns? Dive deeper to understand the company's history, ownership, core mission, and the mechanics of its revenue generation model.

Indonesia Energy Corporation Limited (INDO) History

Understanding where a company comes from is key to analyzing its present and future. Let's look at the origins and key steps in the journey of this energy exploration and production company focused on Indonesia.

Indonesia Energy Corporation Limited's Founding Timeline

The holding company itself has a relatively recent formal start, but its operational roots go back further.

• Year established: The parent holding company, Indonesia Energy Corporation Limited, was incorporated on April 24, 2014. However, its key operating subsidiary, PT Green World Nusantara (GWN), secured the rights to the Kruh Block back in 2010.
• Original location: Incorporated in the British Virgin Islands, with primary operations located in Indonesia, specifically focusing on onshore assets in Sumatra (Kruh Block) and Java (Citarum Block).
• Founding team members: The structure evolved through acquisitions and consolidation. Dr. Wirawan Jusuf, serving as President Director & CEO through 2024, has been a central figure leading the company's strategy and operations.
• Initial capital/funding: Specific details on the initial seed capital for the 2014 incorporation are typical of private formations. Significant funding milestones came later, particularly through asset acquisitions and the public listing.

Indonesia Energy Corporation Limited's Evolution Milestones

The company's path involved strategic acquisitions and accessing public markets.

Indonesia Energy Corporation Limited's Transformative Moments

Certain strategic decisions fundamentally shaped the company.

• Securing the Kruh Block (2010): This wasn't just an acquisition; it was the operational foundation. It provided the initial production, revenue stream, and operational experience in Indonesia's oil and gas sector.
• Going Public (2019): The IPO marked a major shift. It unlocked access to US capital markets, essential for funding capital-intensive drilling and exploration. This move increased transparency requirements and subjected the company to market fluctuations.
• Acquiring the Citarum Block (2018): This represented a strategic bet on natural gas and a potentially transformative, large-scale project, diversifying risk beyond the mature Kruh oil asset. Successfully developing Citarum requires significant capital and exploration success, defining much of the company's long-term strategy and reflecting its stated goals. You can learn more about the Mission Statement, Vision, & Core Values of Indonesia Energy Corporation Limited (INDO).

Indonesia Energy Corporation Limited (INDO) Ownership Structure

Indonesia Energy Corporation Limited's ownership is characterized by a significant concentration among insiders and related parties, alongside public shareholders. This structure influences corporate governance and strategic direction.

Indonesia Energy Corporation Limited's Current Status

As of the end of 2024, Indonesia Energy Corporation Limited operates as a publicly traded company. Its shares are listed and traded on the NYSE American stock exchange under the ticker symbol INDO.

Indonesia Energy Corporation Limited's Ownership Breakdown

Understanding who holds the shares provides insight into the company's control and potential influences on its strategy. Delving deeper into shareholder motivations can be found by Exploring Indonesia Energy Corporation Limited (INDO) Investor Profile: Who’s Buying and Why?. Based on filings proximate to year-end 2024, the estimated ownership breakdown is as follows:

Note: Percentages are approximate based on available data towards the end of 2024 and subject to change.

Indonesia Energy Corporation Limited's Leadership

The strategic direction and day-to-day operations of the company are guided by its executive team and board of directors. Key figures steering the company as of late 2024 include:

• Dr. Wirawan Jusuf - Chief Executive Officer & President Director
• Frank C. Ingriselli - President
• James J. Huang - Chairman of the Board
• Mirza F. Said - Chief Financial Officer (Verification recommended for exact personnel at year-end 2024)

This leadership team is responsible for executing the company's strategy within the framework set by its ownership structure and market conditions.

Indonesia Energy Corporation Limited (INDO) Mission and Values

Indonesia Energy Corporation Limited anchors its operations in exploring and developing crucial energy resources within Indonesia, reflecting a clear purpose even without prominently displayed formal mission statements. The company's actions and strategic direction underscore its commitment to unlocking the potential of its concessions.

Indonesia Energy Corporation Limited's Core Purpose

The fundamental purpose driving the company revolves around the identification, acquisition, exploration, and development of oil and gas assets primarily within Indonesia.

Strategic Objective (Implied Mission)

The company focuses intently on increasing oil and potentially gas production from its key assets, notably the Kruh Block, and advancing exploration activities in promising areas like the Citarum Block. This operational drive serves as its de facto mission: to efficiently extract discovered resources and explore for new reserves.

Long-Term Aspiration (Implied Vision)

INDO aspires to become a more significant contributor to Indonesia's domestic energy supply chain. This involves not just maintaining current production but successfully developing new wells and potentially larger discoveries, thereby enhancing asset value and securing a stronger position in the regional energy landscape. Understanding the company's financial standing is key to assessing its ability to achieve these goals; Breaking Down Indonesia Energy Corporation Limited (INDO) Financial Health: Key Insights for Investors offers relevant perspectives.

Company Slogan

A specific, publicly promoted company slogan is not readily identifiable for Indonesia Energy Corporation Limited.

Guiding Principles (Inferred Values)

While not formally codified in a public list, the company's operational conduct suggests adherence to several core principles:

• Operational Focus: Prioritizing drilling, development, and production activities within its contracted areas.
• Resource Development: Committing capital and expertise to maximize the potential of its existing blocks, aiming for enhanced oil recovery and new discoveries. Based on activities through early 2024, significant effort continues at the Kruh Block.
• Regulatory Adherence: Operating within the framework established by the Indonesian government and relevant energy authorities.
• Shareholder Accountability: Striving to create value through efficient operations and successful resource exploitation, reflected in production figures and reserve reports.
• Indonesian Energy Contribution: Playing a role, albeit currently modest, in the national energy sector through local operations and resource development.

Indonesia Energy Corporation Limited (INDO) How It Works

Indonesia Energy Corporation Limited functions as an independent oil and gas company, concentrating its efforts on exploration and production activities solely within Indonesia. The company generates revenue primarily through the discovery, development, extraction, and subsequent sale of crude oil from its operational blocks under specific contractual agreements with the Indonesian government.

Indonesia Energy Corporation Limited's Product/Service Portfolio

Indonesia Energy Corporation Limited's Operational Framework

The company's operations revolve around the typical upstream oil and gas lifecycle, executed under the terms of its Production Sharing Contracts (PSCs) with the Indonesian government. This begins with exploration, involving geological studies and seismic surveys to identify potential hydrocarbon deposits, like those ongoing in the Citarum Block. If exploration is successful, the company moves to appraisal and development, which includes drilling wells and installing necessary production infrastructure. For assets like the Kruh Block, the focus is on the production phase: operating wells, managing extraction processes, and ensuring efficient lifting of crude oil. The produced oil is then sold, predominantly to the state oil company Pertamina, according to the terms outlined in the PSC, which also dictates cost recovery and profit-sharing mechanisms. Adherence to Indonesian regulations and operational targets is central to maintaining its licenses and achieving its goals, guided by the Mission Statement, Vision, & Core Values of Indonesia Energy Corporation Limited (INDO). Operational efficiency and maximizing recovery from existing wells, alongside progressing exploration, were key activities throughout 2024.

Indonesia Energy Corporation Limited's Strategic Advantages

INDO possesses several strategic advantages that position it within the Indonesian energy sector as of the close of 2024.

• Established Production Base: The Kruh Block provides existing, albeit modest, oil production and associated cash flow, forming a foundation for operations and further investment.
• High-Potential Exploration Acreage: The Citarum Block offers significant exploration upside potential for natural gas reserves, representing a key area for future growth if exploration proves successful.
• Favorable Operating Environment: Operating within Indonesia, a nation with substantial domestic energy demand, provides a ready market for produced hydrocarbons.
• Production Sharing Contract Model: The PSC framework provides clear terms for investment recovery and profit sharing with the government, offering a defined structure for operations and financial planning.
• Focused Strategy: Concentrating solely on Indonesia allows the company to develop deep expertise in the local operating environment, regulatory landscape, and geological context.

Indonesia Energy Corporation Limited (INDO) How It Makes Money

The company primarily generates revenue through the exploration, development, and production of crude oil from its assets in Indonesia. Its income is directly tied to the volume of oil extracted and sold at prevailing market prices.

Indonesia Energy Corporation Limited's Revenue Breakdown

Indonesia Energy Corporation Limited's Business Economics

The core economics hinge on the price of crude oil minus the costs of production and exploration. Key factors influencing profitability include:

• Global oil prices (Brent/WTI benchmarks).
• Production volumes achieved from existing wells.
• Lifting costs per barrel (operational expenses for extraction), estimated around $25-$35 per barrel based on historical data and industry comparisons for similar fields.
• Exploration costs associated with identifying and developing new reserves (significant for future growth).
• Indonesian government regulations, royalties, and production sharing agreements.

Success requires efficient operations to manage lifting costs and successful exploration campaigns to replace reserves and grow production, all while navigating volatile global energy markets.

Indonesia Energy Corporation Limited's Financial Performance

As an exploration and production company, particularly one focused on expanding its resource base, financial performance often reflects significant investment preceding substantial revenue growth. Based on trends observed up to late 2023 and projected into 2024, revenues are primarily driven by output from the Kruh Block. For Fiscal Year 2024, total revenue is estimated to be in the range of $5.5 million to $6.5 million, heavily dependent on maintaining production levels and prevailing oil prices throughout the year. However, due to ongoing exploration activities and operational overheads, the company is expected to report a net loss, potentially in the range of $9 million to $11 million for FY2024. This reflects the capital-intensive nature of oil exploration. A deeper dive into the numbers is essential for investors. Breaking Down Indonesia Energy Corporation Limited (INDO) Financial Health: Key Insights for Investors provides further context on evaluating its financial position and future prospects.

Indonesia Energy Corporation Limited (INDO) Market Position & Future Outlook

As of early 2025, Indonesia Energy Corporation Limited operates as a niche player within the Indonesian oil and gas sector, primarily focused on increasing production from its Kruh Block assets. Its future outlook hinges significantly on the successful execution of its multi-well drilling program initiated in 2022 and continuing through 2024, aiming to substantially boost its relatively small production base.

Competitive Landscape

The Indonesian energy market is dominated by the state-owned entity, with several independent players competing for smaller concessions and opportunities.

Opportunities & Challenges

Navigating the E&P landscape involves balancing potential upsides with inherent risks.

Industry Position

Indonesia Energy Corporation Limited is positioned as a small-cap independent exploration and production company with a concentrated operational footprint in Indonesia. Its growth trajectory is directly tied to its ability to efficiently increase oil output from the Kruh Block through its planned back-to-back drilling program, leveraging the technical service contracts structure. Success here could significantly elevate its production profile from the 2024 baseline, though it remains a minor producer compared to Indonesian giants. Understanding who invests in such focused E&P ventures provides further context. Exploring Indonesia Energy Corporation Limited (INDO) Investor Profile: Who’s Buying and Why? The company's strategy relies on proving up reserves and scaling production efficiently within its existing concessions.