Gas investors urge govt to revise oil and gas bill

Gas investors have urged the government to revise the bill of oil and gas which is expected to be passed into law on Oct. 23 because it obliges them to pay exploration and exploitation fees in addition to the 48-percent corporate income tax, according to Conoco Indonesia vice president Dudung Natanegara.

While the 48-percent income tax is clearly stipulated by existing tax laws, investors remained unclear how much the exploration and exploitation fees would be imposed on them, Dudung said in a discussion forum on Friday.

The investors were also worried about the bill?s ruling which demands gas producers to fulfil domestic demands for gas, according to Dudung.

On Thursday, all factions of the House of Representatives (DPR) committee which deliberated the bill agreed that it be submitted for final approval by the House in its plenary session on Oct. 23.

The government-proposed bill aims to liberalize Indonesia?s oil and gas sector. It entails that the government establish an Executive Body to supervise the country?s oil and gas industry ? a role held by Pertamina for the past three decades. (godang)