U.S oil, gas investors seek tax guarantee

U.S. investors demanded the Indonesian government to ensure legal certainty in the oil and gas sector to allow them pour in new investments, the Bisnis Indonesia daily reported on Wednesday.

This was conveyed by a delegation from the U.S.- ASEAN Business Council to Minister of Energy and Mineral Resources Purnomo Yusgiantoro during a meeting on Tuesday in Jakarta. The talks focussed on the prospect of investment in the country's oil and gas sector.

Purnomo said that one of the concerns of the foreign investors is uncertainty in taxation.

“Tax is one of their (U.S.-ASEAN Business Council) concerns, which must be taken care of because it is related to sanctity of contract,” Purnomo said after the meeting. He did not elaborate.

The government is working hard to attract new investment into the oil and gas sector, which has seen output falling due to the lack of investment amid various uncertainties.(*)