Indonesia to offer incentives for using natural gas
Wednesday, September 20 2000 - 02:30 AM WIB
The Indonesian government has announced that it will offer Domestic Gas Incentives (IGD) to encourage the community and industries to use natural gas.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said with the incentive, the prices of natural gas for the domestic consumers will be 50 percent cheaper than the current price.
"Hopefully the plan could be implemented before the end of this year. Now we are completing the details," Purnomo said in the Indonesia International Oil & Gas Conference and Exhibition (IIOG).
Purnomo said IGD will provide a greater opportunity for foreign investors to invest in gas sector in the country.
Earlier Oil and Gas Director General Rachmat Sudibyo said one of the forms of the incentive is in larger production split for investors.
The split for the investors could increase from 30 percent at present to 35 percent or 45 percent, Rachmat said.
Purnomo said the most attractive incentive for investors is opening the downstream sector of oil and gas industry to them.
He said a draft law on oil and gas will be submitted to the House of Representatives calling for the widest opening of the down stream sector of the oil and gas industry to foreign investors. (*)