Washington (Antara Bali) - Indonesia is considering to extend the
work contract of the United States-based oil and gas company Chevron
after President Joko Widodos (Jokowis) meeting with its Upstream
Executive James Johnson.
Minister of Energy and Mineral Resources Sudirman Said stated that
Chevron, which had been operating for about 90 years, expressed interest
to continue its investment commitment in Indonesia.
Said made the remarks after President Jokowi and his officials had a
one-on-one meeting with Chevron executives at the Blair House in
Washington on Monday.
"They have about 40 thousand employees in Indonesia. Ninety percent
of the workers are Indonesians. They are committed to develop
Indonesia," Said noted.
He said Chevron had specifically prepared the Deepwater Development (IDD) project for Indonesians.
The IDD, which is a deep sea project, is important for Indonesia and is being developed by Chevron.
"This is because the oil prices are less favorable, and three PODs have been revised," Said added.
He explained that during the meeting, President Jokowi had
highlighted the importance of long-term thinking as Chevron had been
operating in Indonesia since a long time.
The Indonesian government lauded Chevrons presence in Indonesia,
while the company too reciprocated the gesture, emphasizing that the
Indonesian government has become increasingly transparent and
accessible.
In addition, Indonesia hoped that the investment of the United
States in the country will diversify after President Jokowis current
visit.
Head of the Investment Coordinating Board (BKPM) Franky Sibarani
noted in a written press statement received in Jakarta on Monday that
one of BKPMs objectives during the visit to the United States this time
was to lend assurance to business circles regarding Indonesias
investment potentials apart from the areas in which the country had
already drawn investors from the United States.
"Ninety percent of investment from the United States in Indonesia is
still focused on the mining sector. It is hoped that President Jokowis
current visit will add momentum to the efforts to introduce Indonesias
investment potentials to investors in the United States, especially in
priority sectors such as infrastructure, agriculture, maritime, and
industrial, including downstream," he emphasized.
Sibarani pointed out that the United States investment in Indonesia continues to be focused on the mining sector.
According to BKPMs records, from 2010 to the third quarter of 2015,
the United States investment in Indonesia was recorded at US$ eight
billion, with the mining sector attracting the biggest share worth
US$7.2 billion, followed by trade at US$258 million, food industry at
US$167 million, transport industry at US$142 million, and chemical or
pharmaceutical industry at US$56 million.
He said the potential to attract investment from the United States
to sectors other than mining was still quite huge, taking into account
that several investors from the United States had not yet invested in
the sectors in which they mainly deal.
Quoting Financial Times data, across the world, investors from the
United States have mainly focused on sectors, such as communication,
software and information technology services, automotive, energy, and
chemicals.
In view of this, Franky said the BKPM will highlight Indonesias investment potential in the digital economic sector. (WDY)
Indonesia Considering Extending Chevron Contract
Selasa, 27 Oktober 2015 15:42 WIB