Oil and gas law should regulate incentives to investors

The oil and gas regulation which is now being prepared by the government should also contain incentives that would enable to encourage investors in oil and gas industries, according to Vice President of PT Caltex Pacific Indonesia (CPI), Wahyudin Yudiana.

?The incentives should be stipulated in a regulation to ensure a legal certainty. They would be better if they are contained in the government?s regulation,? he was quoted as saying by Bisnis Indonesia on Saturday.

He added that the incentives are essential to lure investors enter both downstream and upstream activities in the country?s oil and gas industries. ?The incentives whether they are in the form of taxes or higher shares in the production split should be more competitive than those provided by other countries,? he added.

The government has provided a number of incentives to investors in the oil and gas industries. But they have yet to be included in the government?s regulations.

The new oil and gas regulation will be issued as the follow up of the new oil and oil law which won approval from the House of Representatives (DPR) late last year. The regulation will cover issues related to the change of Pertamina?s status, the implementation agency, the regulatory body, upstream and downstream operations. (*)