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.

Indonesia is reluctant to enter the physical market due to a lack of good-quality Robustas and an uncertain outlook for next year's crop, dealers said on Wednesday. Rains in Indonesia, the world's second-largest Robusta producer after Vietnam, have caused the beans to shrink. The harvest ended in October, but dealers said rains persisted during the current flowering season in the main growing island of Sumatra.

After years of playing second fiddle to Malaysia, Indonesia has now firmly established itself as the world’s biggest producer of crude palm oil. With production capacity of 19 million tons, this position is unlikely to be challenged going forward. With international CPO prices stable at $690 per metric ton, this has been a good year for producers.

The government has issued a regulation aimed at clearing up longstanding legal uncertainty over cost recovery in the oil and gas industry, which it hopes will in turn increase investment in the sector. The government regulation, which has more legal force than a ministerial decree, includes seven new items pertaining to oil and gas extraction. It also introduces a new tax for the transfer of contracts between oil and gas companies.

VIVAnews - Total investment in mineral and coal in 2010 reached US$3.18 billion which exceeds the target set in the strategic plan that the Energy and Mineral Resources Ministry prepared at US$2.12 billion. Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Bambang Setiawan, said the amount includes overall target acquired from a handful of sources such as production sharing contractors and state-owned enterprises focusing on mining.

TEMPO Interactive, Bandung:The West Java government is opening up the sectors of food, energy and water to foreign investors and is targeting 10 percent growth in investment in the region next year. “The government will concentrate on the downstream processing industry,” said Agus Gustiar, the West Java Coordination, Promotion and Investment Agency chief in Bandung yesterday. During 2010, foreign investment totaled Rp27.9 trillion.

Jakarta (ANTARA News) - Investments in the mineral and coal mining sector in 2010 reached US$2.282 billion, according to the ministry of energy and mineral resources. The ministry`s director general of minerals and coal, Bambang Setiawan, said here on Wednesday the realization was above the target set at US$2.119 billion."General mining investments show a good performance," he said.