Oil and Gas Sector Seen as Gateway for Indonesian Investment in the United States
Jakarta (ANTARA) - Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has stated that the oil and gas sector is one of the strategic commodities with potential to serve as a gateway for Indonesian corporate investment in the United States.
He made the remarks in response to the government's plan to encourage Indonesian companies to invest in the US as part of negotiations to reduce the 32 per cent US reciprocal tariff on Indonesia.
"One of the strategic areas is oil and gas. If we look at the business line-up, some of our overseas investments have already taken place, one of which is in the oil and gas industry through Pertamina's subsidiaries, but we need to assess the strategic aspects," said Todotua after attending a Limited Coordination Meeting on Preparations for Discussions with the US Government on Trade Tariffs at the Coordinating Ministry for Economic Affairs on Monday.
A number of state-owned enterprises already have experience with overseas investment, which can serve as a strategic basis for continuing or expanding into the US.
Todotua explained that investment could take various forms, ranging from the acquisition of oil and gas wells, upstream activities, to midstream operations such as the construction of offshore refineries.
He also emphasised that Indonesia's overseas investment strategy, including in the US, would become significantly more flexible with the establishment of the Investment Management Agency (BPI) Danantara.
"With Danantara in place, our strategic positioning for both domestic and overseas investment can be far more flexible than before Danantara existed," he explained.
He expressed hope that the investment strategy in the US would continue to involve state-owned enterprises. Beyond oil and gas, the information technology sector is also on the radar for potential investment.
According to Todotua, investing in technology-based companies such as artificial intelligence firms in the US could provide strategic benefits for national research and innovation development.
"In IT, we could also develop our future research and development. Why not invest, for instance, in AI companies abroad? That would be strategic, because by investing we can obtain returns in the form of strategic R&D benefits for the future," he said.
Although he did not specify which companies would be involved in the investment plan, Todotua indicated that the investment model to be adopted could take the form of combinations or collaborations.
He made the remarks in response to the government's plan to encourage Indonesian companies to invest in the US as part of negotiations to reduce the 32 per cent US reciprocal tariff on Indonesia.
"One of the strategic areas is oil and gas. If we look at the business line-up, some of our overseas investments have already taken place, one of which is in the oil and gas industry through Pertamina's subsidiaries, but we need to assess the strategic aspects," said Todotua after attending a Limited Coordination Meeting on Preparations for Discussions with the US Government on Trade Tariffs at the Coordinating Ministry for Economic Affairs on Monday.
A number of state-owned enterprises already have experience with overseas investment, which can serve as a strategic basis for continuing or expanding into the US.
Todotua explained that investment could take various forms, ranging from the acquisition of oil and gas wells, upstream activities, to midstream operations such as the construction of offshore refineries.
He also emphasised that Indonesia's overseas investment strategy, including in the US, would become significantly more flexible with the establishment of the Investment Management Agency (BPI) Danantara.
"With Danantara in place, our strategic positioning for both domestic and overseas investment can be far more flexible than before Danantara existed," he explained.
He expressed hope that the investment strategy in the US would continue to involve state-owned enterprises. Beyond oil and gas, the information technology sector is also on the radar for potential investment.
According to Todotua, investing in technology-based companies such as artificial intelligence firms in the US could provide strategic benefits for national research and innovation development.
"In IT, we could also develop our future research and development. Why not invest, for instance, in AI companies abroad? That would be strategic, because by investing we can obtain returns in the form of strategic R&D benefits for the future," he said.
Although he did not specify which companies would be involved in the investment plan, Todotua indicated that the investment model to be adopted could take the form of combinations or collaborations.