Indonesia Energy Corporation Limited (INDO): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Indonesia Energy Corporation Limited's (INDO) strategy, and honestly, the picture right now centers on maximizing their main asset, the Kruh Block, while setting up for future growth. As of mid-2025, their proved reserves sit around 3.3 million barrels, driving revenue that hit just over $2.67 million by June, all under a Production Sharing Contract that could see their take jump to 35% of after-tax profit per barrel. This isn't just about oil; it's about how they plan to fund 18 new wells and pivot toward broader energy solutions, which you can see clearly mapped out in the full Business Model Canvas below.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Key Partnerships

You're looking at the relationships Indonesia Energy Corporation Limited (INDO) relies on to keep the oil and gas flowing, especially with that big 18-well program on the books. These aren't just names on a contract; they are the gatekeepers and enablers for their Indonesian assets.

Indonesian Government (SKK Migas) and Regulatory Framework

The relationship with the Indonesian government, channeled through the Upstream Oil and Gas Regulatory Task Force (SKK Migas), is foundational. INDO operates the Kruh Block under a Joint Operation Partnership (KSO) contract, which has a stated expiry date of September 2035. This was bolstered by a 5-year contract extension secured in late 2023. That extension directly improved the fiscal terms, increasing INDO's after-tax profit split from the previous 15% to 35%, which is an increase of more than 100%. The government's regulatory environment is active; SKK Migas launched an expansive exploration program offering 75 potential oil and gas blocks for the 2025-2027 period. For INDO's immediate plans, government permits and approvals from SKK Migas and Pertamina for the late 2025 drilling program were already secured. The Kruh Block concession area itself covers 63,753 acres.

Brazilian Energy Company for Joint Exploration

A clear step toward international partnership was taken in mid-2025. Indonesia Energy Corporation Limited signed a Memorandum of Understanding with a Brazilian Energy Company on August 19, 2025, specifically to explore energy opportunities in Brazil. This was followed by a formal Memorandum of Understanding signed during the state visit by Brazilian President Lula da Silva on October 24, 2025, promoting energy cooperation between the two nations.

Drilling Contractors and Oilfield Service Providers

Executing the development plan requires a network of specialized service providers. INDO's strategy involves drilling a total of 18 new wells at the Kruh Block. The initial phase for late 2025 involved drilling two wells back-to-back to manage mobilization costs. The estimated cost for each well in the original 18-well plan was approximately $1.5M, targeting a future net revenue of $264M upon completion of all 18.

Here are the specifics on the initial 2025 drilling targets:

These operations followed extensive seismic work conducted during 2024 and early 2025, which contributed to a 60% increase in proved gross reserves, reported in May 2025, bringing them to approximately 3.3 million barrels at the Kruh Block.

Financial Institutions for Capital Funding

Financing the multi-year drilling program is a key consideration. While the initial 18-well program had an estimated total cost of up to $27M (18 wells at ~$1.5M each), the stated corporate strategy is to fund Exploration and Production (E&P) activities with Free Cash Flow. As of June 2025, the company reported an Enterprise Value of around $45.5M and Common Stock Equity of just above $18M. The company previously raised net proceeds of $13.8M from its IPO in December 2019.

Local Indonesian Communities

Operational social license and support from local Indonesian communities are necessary for smooth field operations on the 63,000-acre Kruh Block.

• Securing local support is essential for land acquisition and vendor tenders.
• The company is expanding its footprint into the West Kruh Field.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Key Activities

Indonesia Energy Corporation Limited (INDO) focuses its primary Key Activities on the exploration, development, and production of oil and gas assets exclusively within Indonesia.

Oil and gas exploration, development, and production (E&P) in Indonesia.

The core of the Key Activities revolves around managing and developing the company's principal assets in the Indonesian archipelago. This involves ongoing operational management to sustain and increase hydrocarbon output from these concessions.

Drilling at least one new well in H2 2025 at Kruh Block (e.g., K-29 well).

The company executed a tactical shift in 2024 to focus on subsurface data before resuming drilling in the second half of 2025. As of September 9, 2025, operations commenced for the first of two planned wells, with the drilling pad for the K-29 well constructed and drilling pipe delivered, pending government approvals for the drilling rig.

• Multi-year program target: 18 total new wells at Kruh Block.
• Planned wells for H2 2025: 2 wells (Kruh-29 and West Kruh-5).
• Kruh-29 planned total depth: 3,400 ft.
• West Kruh-5 planned total depth: 5,200 ft.
• Expected production start for Kruh-29: By year-end 2025.

Seismic and exploration work to maximize future drilling returns.

Significant investment in seismic work during 2024 and early 2025 directly informed the current drilling locations. This technical groundwork is credited with substantial reserve growth.

• Proved gross reserves increase at Kruh Block: 60%.
• Proved gross reserves as of May 2025: Approximately 3.3 million barrels.
• Drilling rig size planned for new wells: 750 horsepower.

Strategic planning for diversification into broader energy solutions.

Indonesia Energy Corporation Limited is actively planning for asset expansion beyond its current Indonesian footprint. This planning materialized into a formal agreement in August 2025.

• Geographic diversification focus: Exploration opportunities in Brazil.
• Action taken: Signed a Memorandum of Understanding with a Brazilian Energy Company in August 2025.

Managing the Production Sharing Contract (PSC) with the government.

The operational continuity and development plans are underpinned by formal agreements with the Indonesian government entities, specifically SKK Migas and Pertamina, who approved the technical aspects of the new drilling locations.

• Kruh Block contract extension secured: 5-year term extension granted in late 2023.
• Governmental approvals for new well sites (Kruh-29 and West Kruh-5) obtained from SKK Migas and Pertamina.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Key Resources

You're looking at the core assets Indonesia Energy Corporation Limited (INDO) relies on to execute its business plan, which is heavily weighted toward developing its Indonesian concessions. These aren't just line items; they're the physical and human capital that drives the whole model.

The company's physical resource base is anchored by two primary blocks. The producing asset is the Kruh Block, and the high-impact exploration play is the Citarum Block. The value of the physical infrastructure supporting these operations is also a key component.

Here's a breakdown of the tangible and intellectual capital Indonesia Energy Corporation Limited holds as of late 2025.

• Kruh Block covers 63,000 acres onshore Sumatra.
• Citarum Block covers 195,000 acres onshore Java.
• Proved gross reserves at Kruh are approximately 3.3 million barrels following a 60% increase.
• Net Property, Plant, and Equipment (PPE) is valued at about $11.47 million.

The human capital is just as critical, especially given the regulatory environment in Indonesia. You've got an experienced management team here. Honestly, deep local knowledge is something you can't easily buy.

The leadership, including President Frank Ingriselli, brings the necessary sector expertise to navigate the Indonesian energy landscape. That experience helps them manage the contract extensions and drilling programs effectively.

To give you a clearer picture of the asset base, look at this table summarizing the acreage and reserve status as of the latest reports:

Also, consider the planned development activities tied to these resources, which represent future value creation from these key assets. The plan is to drill 18 new wells at Kruh Block by 2027.

The company is also focused on cost efficiency as a key operational resource, aiming to drive production costs below $20 per barrel.

Here are the key financial and operational figures tied to these tangible resources:

• Net PPE: $11.47 million.
• Kruh Block Reserves Increase: 60%.
• Kruh Contract Profit Oil Increase: 100% following the extension.
• Total Planned Kruh Wells: 18 wells by 2027.

Finance: draft 13-week cash view by Friday.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Value Propositions

You're looking at the core benefits Indonesia Energy Corporation Limited (INDO) offers to its stakeholders right now, late in 2025. It's all about maximizing existing assets while setting up the next phase of growth.

Reliable domestic crude oil supply for the Indonesian market.

Indonesia Energy Corporation Limited is positioning its producing asset, the Kruh Block, as a foundational piece of domestic energy security. This focus is critical given Indonesia's projected gas shortfall of 1,836 MMSCFD by 2028, with Jakarta alone consuming 60% of the nation's supply. The Citarum Block, located just 16 miles from Jakarta, is strategically placed to help bridge this gap once brought online.

Increased asset value via a 60% increase in proved reserves at Kruh.

The value proposition here is tangible reserve growth without even drilling a new well yet. As of May 2025, the proved gross reserves at the Kruh Block jumped by over 60%, reaching approximately 3.3 million barrels. This significant uplift came from investments in 3D seismic work completed in 2024 and early 2025, coupled with a 5-year contract extension from the Indonesian government secured in late 2023. This de-risks the core asset substantially.

Here's a quick look at the asset base supporting this value:

High-potential exploration upside from the Citarum gas block.

The Citarum Block offers a massive upside, estimated to hold prospective resources exceeding one billion barrels of oil equivalent. A regional geochemical survey completed between September 2024 and March 2025, analyzing 135 soil samples, confirmed the presence of hydrocarbons in key areas like the Pasundan-1 and Jatayu-1 wells. Honestly, this confirmation might let Indonesia Energy Corporation Limited bypass further seismic work and move straight to the exploitation drilling phase, which is a major time and cost advantage.

Long-term growth plan targeting 18 new wells at the core asset.

The company's long-term commitment centers on developing the Kruh Block fully through a multi-year program to drill a total of 18 new wells. You can see the immediate action plan for late 2025:

• Drill two back-to-back wells: Kruh-29 and West Kruh-5.
• Kruh-29 planned depth is 3,400 ft.
• West Kruh-5 planned depth is 5,200 ft.
• Operations on the first well, K-29, commenced in September 2025.
• Anticipate production from Kruh-29 by the end of 2025.

This sequential drilling approach is smart; it minimizes mobilization costs across the 63,000-acre block.

Strategic commitment to diversify into sustainable energy solutions.

While the immediate focus is on maximizing hydrocarbon production to support Indonesia's current energy needs, Indonesia Energy Corporation Limited maintains a strategic commitment to diversify its portfolio. This includes exploring energy cooperation, as evidenced by signing a Memorandum of Understanding during a state visit in October 2025.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Customer Relationships

You're looking at how Indonesia Energy Corporation Limited (INDO) manages its key relationships, which are heavily weighted toward government and institutional stakeholders given its upstream oil and gas focus in Indonesia. This isn't a B2C model; it's about securing and maintaining long-term concessions.

Direct, long-term contractual relationships with state-owned entities

The core of Indonesia Energy Corporation Limited (INDO)'s customer relationship structure revolves around its contractual agreements with Indonesian state entities for asset development and production sharing. The relationship with the government, acting as the ultimate concession holder, is paramount.

Key contractual details include:

• The 5-year extension of the government contract for the producing Kruh Block, secured in late 2023.
• The 2023 contract extension significantly improved the economics, increasing the after-tax profit split from the previous 15% to 35%. This represents an increase of more than 100% in the company's share of the profit split.
• The company is executing a multi-year program to drill a total of 18 new wells at the Kruh Block.
• Operations on the first of two planned wells for the remainder of 2025 commenced on September 9, 2025.

Here is a snapshot of the asset base underpinning these relationships as of mid-2025:

High-level government engagement for concession and regulatory matters

Maintaining access and operational momentum requires active engagement at the regulatory level. This involves securing necessary approvals for ongoing and future development plans. The relationship is clearly one of compliance and strategic alignment with national energy goals.

Key engagement points include:

• Securing government permits and approvals from regulatory bodies like SKK Migas and Pertamina before commencing drilling operations.
• Engaging in broader international energy cooperation, evidenced by signing a Memorandum of Understanding (MoU) during the Indonesian state visit by the Brazilian President in October 2025.
• The company's fiscal year end is December 31, and its business address is in Jakarta, Indonesia, indicating deep local operational ties.

Investor relations focused on communicating reserve growth and drilling progress

For publicly traded Indonesia Energy Corporation Limited (INDO), the investment community is a critical relationship group that requires transparent and timely updates, especially concerning reserve certification and operational milestones. The company uses investor updates to bridge the gap between technical progress and shareholder value.

Investor communication highlights as of late 2025:

• Announced a major investor update conference call on January 21, 2025, to discuss future plans.
• Reported a significant reserve increase of over 60% to approximately 3.3 million barrels in May 2025.
• The company's Market Cap stood at 43.01M as of June 13, 2025.
• The stock exhibited high volatility, with a beta of approximately 1.8 as of mid-June 2025.
• Management presented at the H.C. Wainwright 27th Annual Global Investment Conference on September 9, 2025.

The focus is clearly on translating geological success into market confidence, as seen in the communication around the 30% expected EUR increase and the 40% reserve increase.

Professional and transactional relationship with oil buyers

As an upstream exploration and production company, the relationship with oil buyers is inherently professional and transactional, focused on the physical sale of produced hydrocarbons. While specific sales contract values or volumes for 2025 are not detailed in the public updates, the relationship is defined by the output from the producing assets.

The nature of this relationship is supported by the operational status:

• The Kruh Block is a producing block covering approximately 258 square kilometers.
• The company expects to begin production from the Kruh-29 well by the year-end 2025.
• The company is classified under SIC 1311 - Crude Petroleum & Natural Gas.

The relationship is governed by the terms of production sharing and off-take agreements, which are standard for this industry segment.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Channels

You're looking at how Indonesia Energy Corporation Limited (INDO) gets its product to market, which is pretty straightforward for an upstream producer, but the regulatory and investor touchpoints are key to its operation.

Direct sales of crude oil to the Indonesian domestic market

Indonesia Energy Corporation Limited (INDO) channels its production directly into the domestic market, meaning its top-line revenue is highly sensitive to the commodity price environment. The company's revenue generation is directly tied to the market price of crude oil.

The primary producing asset feeding this channel is the Kruh Block, which has seen significant reserve growth that underpins future sales potential.

• Proved gross reserves at Kruh Block: approximately 3.3 million barrels (as of May 2025).
• Net crude oil proved reserves (December 31, 2024): 1.98 million barrels.
• Planned drilling for H2 2025: at least one new well.

Transportation via existing infrastructure from Kruh Block to refineries

The physical movement of crude oil relies on the location of the producing asset, the Kruh Block, and its relationship with the national oil company. The company operates the Kruh Block under an agreement with PT Pertamina, the Indonesian state-owned oil and gas company.

Here's a look at the primary producing asset that feeds this channel:

The company is currently awaiting government approvals for the drilling rig to commence work on the K-29 well, the first of two planned wells.

Investor relations website and SEC filings (Form 20-F) for capital markets

Access to capital markets is managed through formal disclosures and direct investor communication channels. You can find the latest audited financials in the Form 20-F filing.

• Latest Annual Report Filed: Form 20-F for year ended December 31, 2024, filed in April 2025.
• Investor Relations Website URL: https://ir.indo-energy.com/sec-filings/.
• President/Investor Contact Email: Frank.Ingriselli@indo-energy.com.
• Transfer Agent: VStock Transfer, LLC.

The company's securities trade on the NYSE American exchange under the ticker INDO.

Direct communication with the Upstream Oil and Gas Regulatory Task Force (SKK Migas)

Operational continuity and future development require close coordination with Indonesian regulatory bodies. Indonesia Energy Corporation Limited operates its producing block under contract with the Indonesian government, working with PT Pertamina.

The Upstream Oil and Gas Regulatory Task Force (SKK Migas) actively engages with stakeholders to promote sector development. For instance, the Head of SKK Migas, Djoko Siswanto, highlighted opportunities for global partners at ADIPEC 2025. The government is currently inviting investors to speed up collaboration on Carbon Capture and Storage/Utilization and Storage (CCS/CCUS) projects.

This regulatory alignment is defintely critical for securing approvals, such as the pending government approvals for the drilling rig tender offers mentioned in September 2025 updates.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Customer Segments

Indonesia Energy Corporation Limited (INDO) serves distinct customer segments, reflecting its upstream focus within the Indonesian energy landscape and its position as a publicly traded entity.

State-owned Indonesian oil and gas companies (e.g., Pertamina)

The operational environment for Indonesia Energy Corporation Limited is heavily influenced by state policy, which directs crude sales toward the national oil company.

• The Indonesian government plans to require all domestic crude output to be sold directly to state-owned Pertamina.
• Pertamina's upstream arm, PT Pertamina Hulu Energi (PHE), is actively seeking to expand its portfolio.
• Collaboration between the private sector and Pertamina regarding non-subsidized fuel availability continues through 2025.

Domestic Indonesian refineries and commercial energy users

The primary value delivered is through the production and potential sale of hydrocarbons from Indonesia Energy Corporation Limited's operated blocks to domestic users, though specific sales contracts are not detailed here.

Global institutional and retail investors (NYSE American: INDO)

The company's listing on the NYSE American defines a segment of global capital providers who trade shares based on operational updates and market sentiment.

• Institutional Ownership stood at 1.16% (as of May 27, 2025).
• Insider Ownership was reported at 37.66% (as of May 27, 2025).
• The stock closed at $5.78 on June 13, 2025.
• The short sale ratio was reported at 36.09% (as of December 2, 2025).
• Total Assets for Q3 2025 were $25.22M.
• Total Liabilities for Q3 2025 were $3.28M.

The Indonesian government as the ultimate concession owner

The relationship with the government is foundational, as it controls the right to operate the assets.

• Indonesia Energy Corporation Limited secured a 5-year contract extension for the Kruh Block in late 2023.
• This extension increased the after-tax profit split from 15% to 35%, a change of over 100%.
• The Energy and Mineral Resources Ministry and SKK Migas offered 75 potential oil and gas blocks for the 2025-2027 period.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Indonesia Energy Corporation Limited's (INDO) operational spending. This isn't about potential; it's about the actual cash going out the door to keep the lights on and the drills turning.

Significant Capital Expenditure (CapEx) for Drilling and Exploration

Capital spending is heavily weighted toward asset development, especially drilling new wells. For the Kruh Block development plan spanning 2024 onward to 2035, the initial investment projection was set at $15.5 million. Each new well in the Kruh Block development plan was previously estimated to cost approximately $1.5M for drilling and completion. As of September 2025, operations commenced for the K-29 well, which is the first of two wells planned for the remainder of 2025 at the Kruh Block, with a planned depth of 3,400 ft.

The company's strategy involved a tactical shift in 2024, curtailing drilling to focus on subsurface data acquisition to improve the effectiveness of future drilling programs.

Costs Associated with Seismic and Exploration Work Completed in 2024

The investment in exploration work during 2024 was a major cost driver, setting up the 2025 drilling campaign. This included significant geophysical surveys:

• Completed 29 sq km of a comprehensive 3D seismic program in the Kruh Block to maximize economic returns.
• Conducted a regional geochemical survey at the Citarum Block between September 2024 and March 2025, analyzing 135 soil samples.

This work was intended to maximize the return on new drilling, which was expected to resume in the second half of 2025.

Production Costs, Including Lifting Costs and Field Operating Expenses

Managing the cost to lift oil from the ground is a key focus area for Indonesia Energy Corporation Limited. Historical production costs at the Kruh Block were $32 per barrel of oil in 2023. The current operational target is aggressive: to drive down production costs to below $20/barrel. The historical production operation cost per Barrel of Oil Equivalent (Bbl) for Kruh was $32 / Bbl in 2023.

Lease and Concession Costs for the Kruh and Citarum Blocks

While specific annual lease payments aren't detailed here, the economics of the concession agreements significantly impact the cost side through revenue sharing. The Kruh Block secured a 5-year extension with improved terms, notably a 100% increase in Profit Oil. For the Citarum Block, under the 'gross split' agreement with the Indonesian government, Indonesia Energy Corporation Limited is entitled to at least 65% of natural gas production.

General and Administrative (G&A) Expenses for Corporate Overhead

Corporate overhead, captured in Selling, General, and Administrative (SG&A) Expenses, shows the cost of running the company outside of direct field operations. Here's how that expense line looked for the last two reported fiscal years:

The jump in SG&A from 2023 to 2024 is definitely something to watch. Finance: draft 13-week cash view by Friday.

Indonesia Energy Corporation Limited (INDO) - Canvas Business Model: Revenue Streams

Indonesia Energy Corporation Limited (INDO) revenue streams are fundamentally tied to the sale of hydrocarbons extracted from its primary asset, the Kruh Block, governed by a Production Sharing Contract (PSC) with the Indonesian government.

The core revenue mechanism is the Sale of produced crude oil from the Kruh Block. This revenue is realized through the Revenue from the Production Sharing Contract (PSC) with the government, which dictates the split of production volumes or profits.

A significant financial driver is the improved economic terms secured via contract extension. You should note the potential increase in profit split from approximately 15% to 35% of after-tax profit per barrel under the extended Kruh contract, an increase of more than 100%. This change is expected to increase anticipated net cash flow calculations based on the Kruh Block development plan by over 200% versus prior anticipations.

Here's a look at the recent revenue performance:

The outline point referencing revenue rising to just over $2.67 million as of June 2025 aligns with the full-year 2024 revenue figure. The trailing twelve months revenue as of June 30, 2025, was $2.29 million, showing a decrease of 26.66% year-over-year.

The underlying asset value supporting this revenue stream has also seen material enhancement:

• Proved gross reserves at Kruh Block increased by over 60%.
• Proved gross reserves reached approximately 3.3 million barrels as of May 2025.
• The company plans to drill two new wells, Kruh-29 and West Kruh-5, in Q4 2025.
• The estimated ultimate recovery (EUR) from the Kruh field is expected to increase by over 30%.

The PSC structure itself is evolving, with Indonesia refining its framework. The current Gross Split PSC scheme, as revised through MEMR Regulation No 13 of 2024, sets the base split for PSC Contractors at 47% for crude oil.

Finance: draft 13-week cash view by Friday.