Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has asked state-owned oil and gas companies to improve their coporate governance, carry out transparency and follow the capital market rules in order to win the market confidence.
"In order to become leading firms in the capital market, state-owned oil and gas companies must improve their corporate governance, carry out transparency, and abide by the capital market rules, including submitting timely reports," the president said when opening the "Indo Gas Seminar and Exhibition here on Tuesday.
The head of state made the remarks in response to a 23.3 percent drop in the price of state-owned gas firm PT PGN`s shares to Rp7,400 each.
The fall of the share price was due to a lack of information on a delay in the installation of gas transmission pipelines between South Sumatra and West Java provinces.
He said that it was a principle for the president and for the state to oblige all state firms to carry out transparent corporate governance.
"This is clearly a matter of principle for the state and for me," the president said.
He said the government had worked hard to ensure that polices on the energy sector could be made clear and would not overlap with other regulations so that they could be accepted by industries, investors and the Indonesian people themselves.
The president said foreign businesses and investors still cast doubt about the investment climate in Indonesia, and hoped for a change in a number of regulations and government`s consistency in implemeting them. They also hoped the government would provide details of its future natural gas development plan.
"The government will try its best to issue correct regulations which set the same standards for all projects and for all investors in an effort to gain market confidence," he said.
He also said that with a new national energy policy, Indonesia was expected to increase its natural oil production from 1.1 million barrels per day to 1.3 million barrels per day. (*)