JAKARTA--Investment in oil and gas sector this year is predicted to reach US$20.92 billion or IDR195 trillion or increased by 50% from the realization of investment last year of US$13.9 billion or IDR130 trillion.
Head of Executive Agency for Upstream Oil and Gas (BP Migas) R. Priyono said the investment of US$20.92 billion was made up of the production investment as much as US$12.84 billion, development of US$4.56 billion, exploration of US$2.125 billion, and administration of US$1.4 billion.
According to him, global investors still see Indonesia as an attractive destination to invest their money along with the high economic growth and rising financial rating of Indonesia.
"Upstream oil and gas industry is expected to take advantages of these conditions, since the geological potency of oil and gas reserves in Indonesia is still quite attractive," said Priyono in an official statement today, Wednesday (06/20/2012).
To attract more investors, Priyono said BP Migas has communicated a plan with the Ministry of Finance related to fiscal incentive program, and the ministry has agreed to provide incentives.
Meanwhile, Deputy Finance Control of BP Migas Akhmad Syakhroza said the agency is still consistently continuing to control the amount of cost recovery. Last year, the average ratio of cost recovery to national revenue was 26%. "This figure is better compared with other countries," he said.
In other countries, for example, Libya's ratio was 35%, while Ivory Coast was 40%, Angola of 50%, and Uzbekistan of 60% of their revenues.(T03/aph)
MOST VISITED CHANNEL: CURRENT ISSUE, ECONOMY, BUSINESS, MARKET & CORPORATE, CONSUMER