Megawati promises to deregulate oil and gas sector

President Megawati Soekarnoputri promised on Thursday to deregulate Indonesia?s oil and gas sector in a bid to attract foreign investors to enter the country?s oil and mineral resources, Media Indonesia reported.

Speaking in a meeting with about 70 Japanese businessmen at Hotel Imperial in Tokyo, the President said that the government would consistently carry out the restructuring program in the energy sector to make Indonesia more attractive as investment destination of foreign companies.

A number of Indonesian businessmen including Rahmat Gobel, Edward Soerjadjaya, Eva Rijanti Hutapea, Aburizal Bakrie, Hari Dharmawan and the newly appointed chairman of the association of Indonesian young businessman Muhammad Lufti also attended the meeting, which was held as one of the President?s program during his visit to Japan.

?The new law (on oil and gas) will provide a strong legal base to consistently restructure the energy sector,? she said, adding that Indonesia did not have many choices but to carry out the deregulation in the sector, or it would be left by the foreign investors.

Making the high-risk oil and gas sector more attractive for investment could not be avoided in the current globalization era, she added.

The restructuring of the industry would include the introduction of business incentives in the field of taxes and licensing procedures, according to the President. Dealing with the security problem, which at present becomes a major obstacle for investors to enter the sector would also become a priority in the restructuring program, she added. (*)