JAKARTA, Jan 10 (Reuters) - Indonesia has approved the first development plan for the Hidayah oil field, off Java Island, run by Malaysia's Petronas Carigali, upstream oil and gas regulator SKK Migas said in a statement.

Petronas found an estimated 88.55 million stock tank barrel oil reserves in its newest exploration well at Hidayah-1 field, the statement said.

Under the approved development plan, the Hidayah field, part of the North Madura II block, is expected to be onstream in early 2027 with initial production of 8,973 barrels of oil per day and reaching peak production in 2033 with 25,276 bpd, SKK Migas said.

The field would require around $926 million in investment and nearly $2 billion of operation costs. The field is expected to be in active production in the period up to 2041.

"The development of the Hidayah field hopefully can increase oil production and contribute to a reduction of oil imports," SKK Migas chief Dwi Soetjipto said in the statement.

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