Revise problematic rules to boost oil and gas output: Vice President

In an effort to boost the country's oil and gas production, Vice President Jusuf Kalla has instructed all the related ministries to remove all the regulations that hamper production, Kompas reported Tuesday.

Kalla said on Monday that the revision of regulations at all the levels of the government is aimed to meet the country's target of 1.3 million barrels per day of oil.

?The main point is all the rules at all levels that are affecting production must be revised,? Kalla said.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that all the problematic regulations have already been identified. Most of these regulations are related to ministries of finance, forestry and environment.

?We were given two weeks time to fix all the problems through inter-ministries or Coordinating Minister,? Purnomo said.

The regulation, according to Purnomo, that must be revised is value added tax during exploration period. This tax should not have been there because at this stage the company does not have any income.

Another point (that must be revised) is customs duty, which should be paid by the government, on oil and gas equipment entering the country, Purnomo said. (*)