Indonesia reassures energy investors

Indonesia's president has said his government will provide incentives to long-term investors in the country's struggling energy sector and promised to strip away red tape to help improve infrastructure.

    Susilo witnessed signing of 46 oil and gas contracts

    In a speech to open an energy conference in the Indonesian capital Jakarta late on Sunday, Susilo Bambang Yudhoyono said he aimed to boost investment in the country's oil and gas industry, which has struggled in recent years despite huge untapped resources.

      

    "I wish to reassure you that I will do my best to remove major barriers in the energy sector," Susilo said.

      

    "I know a lot of you have tax issues on your mind. On this issue I have asked the ministers to study and review the existing tax policy. I promise you that if you stay with us for the long-term, you will harvest the rewards accordingly," he said.

     

    Crucial step

      

    Susilo witnessed the signing of 46 oil and gas contracts worth more than $4 billion, seen as a crucial step towards revitalising the energy sector.

      

    Despite its membership of the Organisation of Petroleum Exporting Countries (Opec), Indonesia has recently become a net importer of oil due to falling production from its ageing production facilities.

      

    The new contracts include 15 production-sharing deals for both oil and gas exploration, with total commitments of $190 million.

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Why Jerusalem is not the capital of Israel

    Why Jerusalem is not the capital of Israel

    No country in the world recognises Jerusalem as Israel's capital.

    Inside the world of Chinese bitcoin mining

    Inside the world of Chinese bitcoin mining

    China is one of the main exchange markets and hosts some of the biggest bitcoin 'mining pools' in the world.

    Africa is not poor, we are stealing its wealth

    Africa is not poor, we are stealing its wealth

    It's time to change the way we talk and think about Africa.