Wed, 11 May 2011

TEMPO Interactive, Jakarta:The United States has asked the Indonesian government for certainty on time limited contracts, especially for oil and gas development. “We don’t want modifications on contracts once they are agreed on,” Tom Cutler from the United States Department of Energy said yesterday.

The US department requested certainty saying length bureaucratic processes in Indonesia were a disincentive for American investors. However, he added that Indonesia’s energy potential was very attractive in the eyes of its investors. “There are abundant resources and the demand keeps on increasing,” he said.

Moreover, Indonesia’s oil production is decreasing. “So, this is the right time to invest,” he said.

In addition to oil and gas, American businesses are interested in renewable energy investment. “Indonesia has 40 percent geothermal resources and companies such as Chevron, are interested in developing it,” he said.