House passes oil and gas bill into law
Tuesday, October 23 2001 - 09:50 AM WIB
The House?s move was taken despite complaints from oil and gas investors that the new law would not adequately accommodate their interests.
Their complaints added to those expressed by a number of House members, who took an active part in the deliberation of the bill, that it gave too large rooms for foreigners to do business in the country?s oil and gas sector.
Conoco Indonesia vice president Dudung Natanegara last week complained about the bill's stipulation that oil and gas investors pay to the government exploration and exploitation fees, in addition to the 48-percent corporate tax.
Natanegara said foreign investors had identified five articles in the oil and gas bill which could cause problems for their businesses in the future. They were related to tax, the establishment of the so-called ?executive body?, the obligation of investors to supply gas to the domestic market, the status of existing contracts, and the licensing of operations. (godang/binzar)