RI oil, gas association to boost contribution to management
Saturday, January 28 2006 - 12:58 AM WIB
The association made the plan because the present local oil and gas companies contribution to oil and gas industrial management activities in Indonesia was recorded at less than 15 percent, he said after the setting up of the association which will be inaugurated by Energy and Mineral Resource Minister Purnomo Yusgiantoro on Feb. 15.
Effendi said foreign oil and gas contractors contributed the remaining 85 per cent in Indonesia.
In this regard, he said, the government should create a conducive investment climate so that national oil and gas companies could be able to intensify its role in the country and to improve its competitive edge worldwide.
"In order to attract more domestic and foreign funds to invest in this country's oil and gas industries, the business climate should be made conducive," he said.
The oil and gas industry needs a huge amount of fund. Last year's investment in the oil and gas sector was recorded at US$7 billion
Effendi also said the association, which has been initiated since 2000, also planned to give concrete contribution to the formulation of a blue print for the oil and gas industry as well as to the national oil and gas companies in the long term.
Meanwhile, Asperminas secretary general Lian Simatupang said the role of the national oil and gas industry in Indonesia was still very low in spite of the 120-year existence of the domestic oil and gas industry.
He cited that Chinese oil and gas industry has contributed 97 percent to domestic oil and gas industrial management activities in that country.
He said his agency has already teamed up with Bank Indonesia, the country's central bank, and will probably cooperate with national banking sector to obtain funds to manage oil and gas industry in the country. (*)