Foreign investors will be given wider opportunities in downstream industry: Tubagus Haryanto

Tubagus Haryono, one of three candidates proposed by the House of Representatives (DPR) to become the chairman of Badan Pengatur Minyak dan Gas or the regulatory body of the country?s oil and gas downstream and retail operations, has said that one of his priorities is to give a wider opportunity to foreign investors to involve in the country?s downstream activities both in oil refinery and retail operations.

In an interview with Bisnis Indonesia on his program, Tubagus said that foreign and local investors would be given an equal treatment.

"The most important thing is that they should be able to ensure sufficient fuel supply and have adequate a strong marketing network to ensure that the distribution of the fuel will reach all segments of buyers including those in the rural areas," he said.

Tubagus, currently the deputy chairman of the energy and investment commission at the House of Representatives (DPR) acknowledged that the requirement that will be imposed on investors to distribute fuel to isolated areas would become an impediment in attracting foreign investors. "We should therefore prepare some kinds of incentives for the sale of fuel in rural areas," he added.

The government will soon establish the regulatory body to take over Pertamina?s regulatory role in the country?s oil downstream industry in accordance with the introduction of the new oil and gas law last year which among others replaced the state owned and oil company?s exclusive rights and regulatory function in both upstream and downstream activities.

Another agency BPMIGAS or Implementing Agency which oversees upstream oil and gas activities has started operation since last year. (*)