Govt to improve security to attract investors

Govt to improve security to attract investors

Ridwan Max Sijabat
The Jakarta Post
Jakarta

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said
the government would increase security at all vital projects and
assets across the country, in a move hoped to help attract new
foreign investment in the oil and gas sector.

Purnomo said a presidential decree on the application of a
multilayered security system at these projects soon would be
issued.

"This new measure is urgent to show the government's strong
commitment to assuring foreign oil investors of their security in
investing in the country, especially in conflict-torn regions,
and to make Indonesia's oil industry more attractive and
competitive," he told The Jakarta Post following a political
discussion here on Saturday.

The government is struggling to attract new investment in the
oil and gas sector as the country's existing oil fields dry up.

Purnomo said the security authorities, investors and the
public should all work together in maintaining security.

He said the presidential decree would regulate that the
security of all vital assets, including oil fields, refineries
and mining companies' headquarters, would be provided by a first
ring of internal security guards, a second layer of local
residents and a third ring of military and police personnel.

Somewhat different from the existing security system, he said,
mining companies would be required to carry out community
development programs to empower residents.

"Many mining companies have developed trouble in their areas
of operation because they forget to empower local communities or
the funds they have disbursed through third parties for community
development do not reach the local communities," he said. "We
should learn from the security disturbances threatening foreign
investment in Aceh, North Sumatra, Riau and Papua."

The minister said the government had asked the military to
continue maintaining security as the "third ring" around vital
assets over the next year or two, as the police carry out
internal consolidations that will eventually allow them to take
over the task of security.

"President Megawati Soekarnoputri has agreed to keep the
military in the third ring during this transition period," he
said.

He said that if this three-layer security system was
implemented, major mining companies such as Caltex, Beyond
Petroleum and ConocoPhilips would be more willing to invest in
the future exploration of new oil fields.

"They have been reluctant to carry out exploration because of
the security uncertainties," he said.