Oil and gas firms want 'lex specialis' reactivation

Oil and gas investors want the govenrment to revive the 'lex specialis' principle for contracts in order to give them security and, as such, attract more investment in the sector, Bisnis indonesia reported on Monday.

The 'lex specialis' principle is included in the agenda to be discussed by oil and gas companies and associations in the National Oil and Gas Caucus that will be held on Wednesday.

"This policy ('lex specialis') was successful in the past. We hope that by applying this policy, we can attract a significant investment," Effendi Siradjuddin, chairman of the Association of National Oil and Gas Companies and the inititator of the caucus, told told journalist in Jakarta on Sunday.

'Lex specialis' is a principle under which a contract is considered equal to a law. As such, all terms in the contract are unchangable unless there is an approval from the parliament. This will protect investors from potential liabilities caused by changes in the government's regulations, particurly tax rugulations.

Effendi said the lex specialis principle would provide investors with contractual certainty and transparency of rules as well as protect them against problematic tax and levies at both national and regional levels.

The caucus will also launch Indonesia Oil and Gas Incorporated 2020 program. (*)