Megawati promises oil, gas firms better security
Megawati promises oil, gas firms better security
Moch. N. Kurniawan, The Jakarta Post, Jakarta
President Megawati Soekarnoputri vowed on Tuesday to improve the
country's security situation in a bid to attract more investment
in the country's oil and gas sector.
"I would like to state that it is my determination despite the
constraints and limitations that my government is facing, to do
my utmost to make Indonesia secure for investment," she told oil
and gas firms at the opening ceremony of the 28th annual
convention and exhibition of the Indonesian Petroleum Association
(IPA).
The event was attended by several key ministers including
Coordinating Minister for Political and Security Affairs Susilo
Bambang Yudhoyono, Minister of Energy and Mineral Resources
Purnomo Yusgiantoro and about 1,500 local and foreign
participants.
Megawati said that a favorable security environment was
important in order to maximize development in the country's oil
and gas sector.
She noted that the oil and gas industry contributes greatly to
the state budget and the development of the overall economy.
Over the past couple of years, Indonesia has been plagued by
ethnic and religious conflicts as well as secessionist demands
from certain provinces which have created jitters among
investors. The launching of regional autonomy policy had also
contributed to the deterioration in security conditions in
various areas prompting local people in some cases to set up
blockades of oil and gas facilities or steal company assets.
U.S. oil and gas giant ExxonMobil Corp., for instance, had to
temporarily suspend its natural gas operations in Aceh last year
amid intensifying conflict between the military and local rebels,
who for many decades have been waging a low-level separatist war.
Fresh investment in the oil and gas sector reached US$1.64
billion between January and September of last year, far from the
government's full year target of $5.4 billion.
Indonesia relies heavily on oil revenues to finance its state
budget.
Megawati also called on investors to invest more in the oil
and gas sector to take advantage of the country's new oil and gas
law designed to liberalize the sector.
Vice chairman of ChevronTexaco Corporation Peter J. Robertson
hailed the government's determination to restore the country's
security conditions, saying it would create a more competitive
investment climate in the country.
"It is encouraging to see that President Megawati and her
Cabinet are determined to create the competitive investment
climate that Indonesia so urgently needs," he said.