Only 20% of local exploring companies can survive

After facing the tough time during the country?s worst ever financial crisis that hit the country in late 1997, at present local gas and oil exploring companies have to face sharp competition from Chinese companies which can offer lower tariffs.

Eddyono Salatun, the vice chairman for the public relations department of the association of Indonesian exploring companies (APMI) said in Jakarta on Wednesday that many local companies had to close down for being unable to compete with the Chinese companies.

?Some time ago there were about 100 oil and gas exploring companies in the country. At present only 20 percent of them can survive,? he said as reported by Kompas daily on Friday.

The entry of many Chinese gas and oil service companies, which can offer much lower tariffs has now become the main problem of the local exploring firms, he said, adding that the existence of the local companies which mostly use American technology would be further threatened by the Chinese firms, if the government did not help solve the problem.

?The government should protect the local players. At least, there should be a standard in the use of equipment,? he said. (*)