Investment climate in oil, gas sector still unfavorable: IPA
Jakarta (ANTARA News) - The investment climate in the oil and gas sector in Indonesia is stil unfavorable because a number of problems have remained unsolved, an Indonesian Patroleum Association (IPA) official said.
Sugiarto, chief of IPA`s convention, said here Monday among the problems oil and gas companies in Indonesia still complained about had to do with taxation, overlapping land areas, security.
"Actually, the government has already decided to provide varous facilities to oil and gas companies , unfortunately, the decisions have yet to be implemented," he said.
Citing an example, he said the government had already issued a regulation on tax exemptions for companies that are not yet producing but in practice the regulation is still not being implemented.
About security, he said there had been improvements in the situation "but investors still feel the need to take precautions."
Meanwhile, Abdul Muin, deputy head of the government`s Oil and Gas Upstream Regulatory Body (BP Migas), also admitted that the investment climate in the oil and gas sector still needed to be improved.
Improvements were paticularly needed in the situation where there were differences between the tax regime applied by the central government and those by regional aministrations and where there was overlapping of authority over land areas where exploration activity was to take place.
He said the government was devising a system of licensing land use which required preservation fo the nvironment without disrupting oil and gas exploration activity.
Muin also said although the government wanted an acceleration in oil and gas production, it would not give incentives to all and gas production areas. Incentives would not be givven to highly economical areas but to less ecoomical areas, he said.
Sugiarto said IPA was to hold a convention on May 14-16 to discuss efforts to increase oil and gas production. To be officially opened by President Susilo bambang Yudhoyono, the convention would be a forum to bring together investors and the government.(*)
Sugiarto, chief of IPA`s convention, said here Monday among the problems oil and gas companies in Indonesia still complained about had to do with taxation, overlapping land areas, security.
"Actually, the government has already decided to provide varous facilities to oil and gas companies , unfortunately, the decisions have yet to be implemented," he said.
Citing an example, he said the government had already issued a regulation on tax exemptions for companies that are not yet producing but in practice the regulation is still not being implemented.
About security, he said there had been improvements in the situation "but investors still feel the need to take precautions."
Meanwhile, Abdul Muin, deputy head of the government`s Oil and Gas Upstream Regulatory Body (BP Migas), also admitted that the investment climate in the oil and gas sector still needed to be improved.
Improvements were paticularly needed in the situation where there were differences between the tax regime applied by the central government and those by regional aministrations and where there was overlapping of authority over land areas where exploration activity was to take place.
He said the government was devising a system of licensing land use which required preservation fo the nvironment without disrupting oil and gas exploration activity.
Muin also said although the government wanted an acceleration in oil and gas production, it would not give incentives to all and gas production areas. Incentives would not be givven to highly economical areas but to less ecoomical areas, he said.
Sugiarto said IPA was to hold a convention on May 14-16 to discuss efforts to increase oil and gas production. To be officially opened by President Susilo bambang Yudhoyono, the convention would be a forum to bring together investors and the government.(*)