Investors Need Legal Certainty, The DPR And The Government Agree To Accelerate The Revision Of The Oil And Gas Law

Illustration (Photo: Doc. Antara)

JAKARTA - The government and the DPR have agreed to immediately complete the revision of the oil and gas law (UU Migas).

This is one of the efforts to attract more investment in the upstream oil and gas sector in Indonesia.

This revision of the Oil and Gas Law can be a legal umbrella for institutional strengthening such as SKK Migas.

"Our joint concern is legal certainty through the revision of the Oil and Gas Law. This revision has been highly anticipated," said Director General of Oil and Gas Tutuka Ariadji in a Hearing Meeting with Commission VII DPR quoted Wednesday, December 14.

Tutuka admitted that the proposed substance in the revision of the Oil and Gas Law had been prepared by the government, in which the material was input from various parties, as well as collaborating with the DPR's Expert Board.

We propose quite basic things to attract investors. One of the proposed issues is taxation, especially value added tax, income tax, which is not a short process. Another suggestion is to support the exploitation of oil and gas sources," he said.

The government, he said, is also working on managing oil and gas resources as optimally as possible to meet increasing domestic demand.

Various ways to attract the oil and gas investment climate continue to be carried out by the government, including improvements to the terms and conditions of the Regional Auction (WK), gas, the transfer of the Participating Interest (PI) of more than 51 percent in the WK Extension/Alih Manpower and incentives.

Until now, a number of large KKKS are still investing in Indonesia such as BP, ENI, ExxonMobil and Harbor Energy.

In fact, said Tutuka, Indonesia is the only country that BP is still interested in to invest in fossil energy.

"I can say that BP is in a condition that is currently difficult to get investment in their internals in the field of fossil energy, it is only allowed to invest in Indonesia. Elsewhere, he did not invest in fossils because he had switched to renewable energy," said Tutuka.

Learning from developed countries, he continued, the main thing to manage investment is openness and legal certainty.

To manage investment, the main thing is openness or openness. Communication with KKKS must be opened once. In addition, trust to them. Then legal certainty," he said.