Investment in energy and mineral resources to reach $20b

The government predicts that total investment in the country's oil, power and mining sectors would reach US$20 billion next year, while investment commitment in the sectors totaled $19 billion in the first quarter of the year.

Upon delivering a speech at the National Executive Conference of the Indonesian Chamber of Commerce and Industry (KADIN) here on Tuesday, Minister of Energy and Mineral Resources Purnomo Yusgiantoro disclosed that the estimated 2008 investment figure accounts for one fifth of the total inward investment in the country.

This year, investment in the sectors could exceed $19 billion because several signed investments have not been realized, he said.

The investment is dominated by by the oil and gas upstream sector, electricity projects including the 10,000 MW power plant projects, and the expected increase in the investment in the mining sector.

KADIN?s vice chairman in charge of energy affairs Dito Ganinduto, who is also a legislator, believed the investment commitment for 2008 include the planned spending in Cepu block, East Java and Natuna D-Alpha block in Natuna Sea.

Dito called on the government to continue monitoring the investment commitments so that investors realize their projects. ?If necessary, the government needs to set timetable and terminate the contracts unless they realize their commitments,? he said. (*)