Govt removes import duty for oil and gas upstream industry

The government has removed import duties on equipment used for oil and gas upstream industry, Bisnis Indonesia reported on Saturday.

The zero percent import facilities are given to companies which carry out exploration and production activities under production sharing contracts with BP Migas, the regulatory body for oil and gas upstream industry.

The facility was issued by the Finance Ministry on July 15 and began effective July 16. "The import duty facility is important to encourage investment in oil and gas exploration and production," Finance Minister Sri Mulyani said in a statement, as quoted by the newspaper.

The facility covers a wide range of equipment and products including drilling and production equipment, power generator sets, machines, pipes, vehicles, tanks, electricity tools, office and household appliances. (*)