The Energy and Mineral Resources Ministry says the newly issued regulation on cost recovery and taxation in the oil and gas industry will boost investment.
The ministry’s director general for oil and gas Evita Herawati Legowo said Wednesday legal uncertainties over cost recovery and taxation had long been major reasons that investors were reluctant to enter the sector.
“Investors and oil and gas production sharing contract holders need legal certainty. This newly issued regulation will provide clarity on the rights and obligations of investors.”
The ministry has set a target to attract a total investment of US$14.9 billion (Rp 134.28 trillion) in the oil and gas industry next year.
This year, the ministry targeted a total investment of $15 billion. As of September, investment had reached $7.9 billion, $7.5 billion of which was from the upstream sector and $400 million from the downstream.