PSCs will get incentives: BP Migas

BP Migas, the country's oil and gas upstream regulator, is preparing a number of incentives for production sharing contractors (PSCs) to help lure badly needed investment in the sector.

The planned measures include tax reduction, streamlining land clearance for exploration activities in protected forests, and a reduction in fund contribution to local governments, Bisnis Indonesia reported Monday.

BP Migas chairman Kardaya Warnika said that his office is currently coordinating and holding discussions with several governmental agencies in this regard.

?We have increased the coordination and synchronization between agencies to attract bigger investment for the oil and gas upstream sector. We will improve the tax system, which is less competitive if we compared with other countries,? Kardaya said recently.

BP Migas has coordinated with the Ministry of Forestry regarding land clearance for drilling activities in the protected forests and with Directorate General of Maritime Transportation for synchronization regarding the installation of offshore production facilities. (*)