Jakarta (Antara Bali) - The government is chalking out several strategies to stimulate development in the oil and gas industry, which is a gloomy state due to the fall in global crude prices.
One of the strategies is to extend the schedule of explorations during challenging times and to provide flexibility in the transition of the exploration process, Oil and Gas Director General of the Ministry of Energy and Mineral Resources I Gusti Nyoman Wiratmaja Puja stated.
"For instance, flexibility has been offered for the drilling commitment, so data and other aspects can first be analyzed," Wiratmaja noted at the 4th Convention and Marketing event of the Indonesian Petroleum Association (IPA) here on Wednesday.
Wiratmaja claimed the government will also provide incentives for projects being implemented in deep seas and remote areas, simplification of data access, and cost recovery opportunity in the production sharing contract (PSC) scheme.
Moreover, the government continues to hold discussions on matters linked to tax holidays, first trance petroleum, domestic market obligation holiday, and the government's share.
"The auction system has also been made attractive by moving from the split fix system to the bid system," he revealed.
The land and building tax for explorations is no longer imposed, and the dynamic split scheme has also been applied at the Mahakam Block.
Investors in Indonesia want the government to offer incentives and legal certainties when they invest in the country, IPA President Christina Verchere stated.
Verchere hoped the government will give greater attention to the upstream sector.
"We hope the government will not ignore the upstream sector but deregulate this sector correctly," Verchere stated, adding that Indonesia was one of the countries in the world to have the most varied upstream industries, with 200 PSCs. (WDY)
