Industrialists await the birth of a revision of Law No. 22 of 2009 concerning Oil and Gas (UU Migas). The slow completion of the revised regulation is considered to have worsened the oil and gas investment climate, which is currently in crisis.
He admitted that the oil price which had reached below US$ 30 per barrel was a major blow to the upstream oil and gas industry, as well as the supporting industries. His party hopes that the House of Representatives (DPR) as the initiator and the government take quick steps in completing the revision of the Oil and Gas Law which is included in the National Legislation Program. The Indonesian Chamber of Commerce (Kadin) also hopes that the role of the private sector will be strengthened as a strategic partner of the government.
Regarding the aspect of oil and gas governance, Kadin requested that there be special rules that ensure the availability and development of infrastructure so that the distribution is evenly distributed. Moreover, in 2030, gas is predicted to make a major contribution to industrial development. The high price of gas makes production costs higher so that it suppresses competitiveness.
Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar did not deny that upstream oil and gas activities in recent years were at their lowest point, Indonesia was in the bottom 15 of the 120 countries where oil and gas investment is located, which means that the domestic investment climate is not conducive. Member of the Indonesian House of Representatives Commission VII Satya Widya Yudha said the discussion on the revision of the Oil and Gas Law was expected to be completed in early 2017.
Media Indonesia, Page-17, Wednesday, Nov 2, 2016
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