Published on 15/05/2024 at 02:15 GMT+7 Reading time
Minister of Emergy and Mineral Resources, Arifin Tasrif, says Indonesia is currently focusing its efforts on exploring oil and gas basins in an attempt to increase their production amid declining production of the two energy sources.
Arifin emphasizes that Indonesia still holds abundant untapped oil and gas reserves, citing that out of 128 hydrocarbon basins, 68 remain entirely unexplored.
"Commencing this year, the Indonesian government will add new oil and gas working areas annually. Investors can participate through the government's bidding process for working areas or directly negotiate with the government," he said while addressing the opening ceremony of Indonesia Petroleum Association's Convention & Exhibition on Tueday, May 14, 2024.
In order to maintain the investment climate, the government also provides several tax facilities and incentives for upstream business activities to provide attractive investment climate to investors related to the economic aspects of oil and gas development.
In other words, besides providing attractive terms and conditions at the beginning of the contract, the government also has a policy to provide tax facilities and incentives during the oil and gas field development stage.
"The tax facility will cover some indirect tax exemptions that have been regulated in Government Regulation No. 27/2017 and Government Regulation No. 53/2017, while the Incentives for Upstream Business Activities will cover all terms within ministerial authority as regulated in Minister Energy and Mineral Resources Decree No. 199/2021," he said.
The government has continuously made efforts to create a favorable investment climate. It is currently in the final stage of revising Government Regulations No. 27 and No. 53 of 2017, which is aimed at enhancing the economic viability of oil and gas projects.
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