Indonesia to Extend More Incentive to Oil, Gas Sector

Indonesia is planning to extend more incentives to attract more investment and expand exploration activities in the oil and gas industry, local media said citing a minister. 

Acknowledging Indonesia’s inability to meet the growing domestic demand for energy, Energy and Mineral Resources Minister Jero Wacik stated that inducement is key for luring investors, Jakarta Globe reported. 

“More exploration is needed, and this can be done by providing more attractive incentives. We still have plenty of reserves according to seismic data,” said Jero during his keynote speech at the annual Indogas conference and exhibition in Jakarta. 

Edi Hermantoro, the interim director general for oil and gas at the ministry, claimed that the government has already provided incentives for exploration activities, though its implementation has been hampered due to a lack of supporting information relayed by the finance minister.