IPA calls for regulatory and fiscal policy reform to grow the oil and gas industry

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Photo by IPA

JAKARTA (TheInsiderStories) – Indonesian Petroleum Association (IPA) calls for regulatory reform and improvements in fiscal policy to revive the oil and gas industry in Indonesia, said the president in a press statement. Oil prices have been low during the last two years and have led to a decrease in the exploration and exploitation of oil and gas, added IPA .

“It is estimated that world crude oil prices in the coming years will continue to remain low. This condition needs to be seriously addressed by all stakeholders to reform the related rules in the oil and gas industry to attract investors to come to Indonesia,” said the President of IPA, Christina Verchere, at the Annual General Meeting (Annual General Meeting) of the IPA in Jakarta on Wednesday (7/12).

She explained, that the Indonesian government’s efforts to attract more investment into the country have been seen by some changes in the regulatory environment related to the industry, but on the other hand there are still many challenges from other stakeholders who have different interests.

Christina remarked that the IPA and the government have worked collaboratively and have had a lot of discussions and meetings to discuss regulatory reform and fiscal policy throughout 2016.

“Going forward, we will continue with the Government to find a formula and the proper implementation of oil and gas reform in order to improve the oil and gas investment climate in Indonesia,” she said.

Previously, Minister of 
Energy and Mineral Resources Ignasius Jonan set to improve the energy business in the country will focus on nine priority programs.

The nine priority programs are: development of downstream mineral sector, revision of cost recovery rule, Masela Block, East Natuna Block development, one fuel price system, oil refinery, gas price issue, 35,000 MW of power plant project and oil and gas block participating interest (PI).

While, Vice Minister of Energy and Mineral Resources Archandra Tahar said the ministry is reviewing the ministerial decree (PP) No 1/2014 on mineral resources downstream development.

The ministry is also reviewing the independent power producers which are considered non-qualified in developing power plant projects. The move is aimed to ensure that the power plant programs are moving forward as scheduled.

The post IPA calls for regulatory and fiscal policy reform to grow the oil and gas industry appeared first on The Insider Stories.

Source: The Insiderstories
IPA calls for regulatory and fiscal policy reform to grow the oil and gas industry

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