Monday, 28 July 2008

Oil and natural gas investment in Indonesia became less competitive

In the middle of decreasing national oil production, Indonesian based oil and natural gas companies have evaluated that the investment climate in this sector has become less conducive. Amount of problems related to the bureaucracy and cost recovery that appeared in the last two years need a solution. According to the survey from PricewaterhouseCoopers (PwC), there are five problems that make the oil and natural gas industrial in Indonesia became less conducive and competitive. They are the lack of diligence for the oil and natural gas contact, uncertainty on the cost recovery especially related with the findings of the Indonesian Supreme Board (BPK), taxation, intervention from the government institution other than Ministry of Energy and Mineral Resources, and the safety guarantee on assets. (Kompas, Fri May, 23, p. 18)

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