No signs of foreign oil and gas firms to leave Batam Island

There are no signs yet that a dozen of foreign oil and gas firms operating on the Batam Island would leave the bonded zone area despite the government recent decision to impose value added tax and luxurious tax on import.

The Riau Post daily said that this was the conclusion reached during a gathering among officials of the Batam Island authority, local chamber of commerce and industry, and one of the island's huge foreign oil and gas firms.

"There are many foreign oil and gas firms here operating under a production sharing contract with Pertamina (state oil and gas firm). We give them explanation (about the new tax policy) and there are no signs that they will leave," said Daniel Buharnuddin, an official of the local chamber of commerce and industry.

Rafdinal Rasyid of the Batam Authority also said that he and his team had tried to explain to the foreign oil and gas firms about the new tax policy.

Riau Post said that several foreign oil and gas firms including Total Indonesia, Caltex Pacific Indonesia, Gulf Resources, Santafe Energy, Primer Oil, Mobil Oil, Conoco Indonesia, VICO, Arco Indonesia, and Kondur PSA had earlier threatened to leave the Batam Island of the government proceed with the new tax policy. (*)