Cost recovery regulation to be reviewed

The government plans to review the cost recovery regulation in a bid to help improve investment climate in the country?s oil and gas sector, Bisnis Indonesia reported on Wednesday.

Coordinating Minister for the Economy Hatta Rajasa said that improving investment climate is crucial to help increase energy production and fulfill the national energy needs. By 2025, the country will need 8 million barrel of oil equivalent per day. This year, the oil production target is set at 950,000 bpd.

?This is a huge challenge. It means that the investment climate needs to be improved. One (of the factors) is to review the government regulation on cost recovery. So are the issue of land conflict and licensing problem,? Hatta told reporters on the sidelines of Asia Pacific Oil and Gas Conference and Exhibition. (*)