Oil and gas-related companies to operate under special regulation

Minister of Energy and Mineral Resources Purnomo Yusgiantoro and Minister of Trade Marie E. Pangestu have agreed that companies operating in the oil and gas sector should operate under a special regulation, Neraca daily reported on Thursday.

"We have agreed that companies in the oil and gas sector should operate under a special regulation," Minister Marie Pengestu told reporters following a meeting with Minister Purnomo.

Minister Marie said that most companies operating in the oil and gas sector are the government's contractors, different from normal business entities in other industries. Thus definition of their status should be clarified to show their differences with other business entities.

The agreement made by the two ministers was part of the initial steps carried out by the government before the introduction of new investment law, which is now under preparation.

During the meeting, Minister Purnomo also asked the trade minister to give a special treatment to oil and gas sector in a bid to attract more investors enter oil and gas exploration activities.

According to Purnomo, a number of tax regulations such as the exploration tax should be removed in a bid to provide more conducive investment climate in the oil and gas sector. "Fiscal incentives are needed to lure more investor enter oil and gas exploration activities," he added. (*)