Oil and Gas Regulator, Government Optimistic Positive Trends Upstream Oil and Gas Investment Continues

By : Hariyanto And Aldo Bella Putra | Sunday, May 20 2018 - 23:00 IWST

Wakil Menteri Energi Dan Sumber Daya Mineral, Arcandra Tahar
Wakil Menteri Energi Dan Sumber Daya Mineral, Arcandra Tahar

INDUSTRY.co.id - Jakarta - Since its implementation in 2017, the gross split Production Sharing Contract (PSC) scheme has had a positive impact on the development of oil and gas investment in Indonesia.

The government is optimistic that the upstream oil and gas upstream trend will continue with the introduction of new oil and gas blocks, either new blocks or termination blocks.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar asserted that in 2015 and 2016 no single oil and gas blocks auctioned by the government (22 blocks) attracted investors. It was still using the PSC Cost Recovery scheme.

"After we turn into gross split in 2017, five blocks of oil and gas (from 10 conventional WK) we offer for this year there are 4 blocks, we wait until June how much more behavior, we are optimistic will continue to sell, this is very positive ", said Arcandra on TV One News Jakarta, Friday (18/05/2018),

In addition to the new oil and gas block offered, continued Arcandra, also recorded 13 termination blocks using gross split scheme from 2017 range until now. One of them is the Jambi-Merang termination block, where the investment value of a 5-year commitment must be USD 239 million, with Pertamina contractor.

"This commitment is very big and it only happened this year", added Wamen Arcandra.

Another policy by the government to attract investors and provide ease of investment is the issuance of Government Regulation No. 53 of 2017 on Tax Treatment on Upstream Oil and Gas Activities with Gross Split Distribution Contract.

Arcandra explained, with the issuance of the PP, the Ministry of Finance provides incentives in the form of not charging the cost to the contractor in exploration activities, where indirect tax (indirect tax) is now free until first oil.

"In PP 53 of 2017, the Ministry of Finance provides more incentives, indirect tax is released, even up to First Oil", he added.

Arcandra also believes that in the future, investment in upstream oil and gas sector in Indonesia will be more excited, as world crude oil price increases. "I am optimistic that there will be many investors", concluded Arcandra.

News Comment

Today's Industry

The Jakarta Convention Center (1001malam.com)

Rabu, 22 Januari 2025 - 12:53 WIB

MICE activities at JCC halted, PT GSP continues legal process

PT Graha Sidang Pratama (PT GSP), the investor and manager of the Jakarta Convention Center (JCC), revealed that the company is currently unable to run Meeting, Incentive, Convention and Exhibition…

Images By : Freepik

Sabtu, 14 September 2024 - 16:56 WIB

Essential Tips for Choosing Personal Health Insurance in the US

Choosing the right health insurance plan in the United States can be a complex task, especially with the variety of options available and the ever-changing landscape of healthcare policy. Here…

Images By : Freepik

Sabtu, 14 September 2024 - 16:53 WIB

The Top 10 Insurance Companies in the US for 2024

In the ever-evolving landscape of insurance, selecting the right company can significantly impact your financial security and peace of mind.

Images By : Freepik

Jumat, 13 September 2024 - 15:37 WIB

Why Airbnb Become Popular in 2024?

Airbnb fosters a more interactive experience between hosts and guests. Through direct messaging, guests can inquire about specific details, negotiate pricing, or clarify expectations, which…

Flag of the United Nations Organization.

Kamis, 15 Agustus 2024 - 14:26 WIB

Modena Officially Becomes a Member of the UN Global Compact

Commited to transforming towards sustainable business practices, Modena the global home appliance established over 60 years ago in Italy, officially became a member of the UN Globe Compact (UNGC)…