Kadin urges govt to issue oil investment regulations

The Indonesian Chamber of Commerce (Kadin) urges the government to quickly issue necessary regulations to boost foreign investment in the country's oil and gas upstream sector, the Kompas newspaper reported in its Friday edition.

Kadin promises to lobby the government to immediately issue the regulations because foreign investors had been reluctant to invest in the sector and adopted a wait and see approach, said Dito Ganinduto, Kadin's vice chairman for energy and resources.

As a result, Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), became a net crude oil importer in March as lack of invetment causes falling output.

However, the government said it is optimistic Indonesia will become net crude oil exporter again later this year as some new oil wells are expected to begin production.

“At present, there are 16 companies, both foreign and domestic, have received licenses. But until this day, they haven’t started their operations because the government is yet to issue regulations on the oil and gas upstream sector. If they will start their operations, others will also join the fray,” Dito said.

Dito said that he will meet Mines and Energy Minister Purnomo Yusgiantoro Friday. (*)