Govt to tender six oil exploration projects, worries about security threats against FDI projects

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said over the weekend that the government would soon tender six oil exploration projects in Kalimantan and Makassar Strait, but expressed concerns over increased security threats against foreign direct investment (FDI) projects in the energy and mining sectors.

Purnomo, however, did not provide details about the six projects, and only said that his party was very concerned about increased security disturbances against FDI projects, starting from forced occupation of their operation by local people, to kidnapping and lastly bombing in the facilities owned by U.S. gold miner PT Newmont Mataram in West Nusa Tenggara on Friday last week.

Purnomo noted such security threats must be handled properly because Indonesia currently badly needed foreign direct investment to bring in capital and technology, and eventually help revive economic activities and bring about economic recovery.

If the government, in this case security forces, including the police, could not minimize security disturbances against foreign projects in Indonesia, it would give bad impression to foreign investors about security situation in Indonesia, and this would adversely affect foreign investment in the country.

He noted that foreign investors had been fed up by increased criminal activities against their operation in the country.

On the other hand, he could understand some protests by local people who were deprived by the presence of foreign investment projects in their areas.

"Therefore, understanding for the benefits of the two sides is badly needed. Foreign companies get the profits, and local people could also improve their well being," Purnomo said. (*)