Govt to provide incentives for CBM investment

Vice President Boediono has instructed the Ministry of Energy and Mineral Resources and the Ministry of Finance to formulate incentives for investment in coal bed methane (CBM), Bisnis.Com reported on Sunday.

The vice president gave the instruction during a meeting last week on the development of national gas. Indonesia urgently needed to have other sources of gas, including CBM, Boediono was quoted by his spokesman Yopie Hidayat as saying during the meeting.

According to Yopie, Indonesia has huge CBM resources, which are mostlly unexplored since due to the lack of interest on the part of investors.

"The vice president believe that the CBM contract needs to be softened to attract investors," he said. (*)