Govt sets limits on foreign ownership in energy business

The government has issued a presidential regulation allowing foreign investors to have a maximum 95 percent ownership in 12 sectors of business in oil, gas and electricity sectors.

The Presidential Regulation No. 111/2008 signed by President Susilo Bambang Yudhoyono on Dec. 27, 2007 amended the Presidential Regulation No. 77/2007 on businesses closed to and open on some conditions for investment, detik.com reported on Wednesday.

The 12 sectors include four in oil and gas industry and eight in electricity industry.

The four sectors in oil and gas industry are oil and gas drilling in offshore areas outside the eastern part of Indonesia; oil and gas drilling in onshore areas; oil and gas facilities operation and maintenance; and engineering, procurement and construction (EPC).

The eight sectors in the electricity industry are power generation; power transmission; power consultancy; installment and construction of power equipment; operation and maintenance of power equipment, development of technology for power provision equipment; power distribution; and nuclear power generation. (*)