Government obliges oil and gas contractors offers 10% to regional-owned companies

Indonesia government will obliges oil and gas contractors to offer 10 percent participating interest to regional-owned enterprises (BUMD) in its work area. I Gusti Nyoman Wiratmaja, Director General of Oil and Gas at the Energy and Mineral Resources Ministry, explained that drafting a regulation will include criteria of regions entitled to receive the participating interest. He asserted that BUMD are allowed to cooperate with state-owned enterprise, government owned financing institutions, and national private companies and must establish a consortium.