JAKARTA - Indonesia has great potential in the oil and gas (oil and gas) sector, but the potential it has is now in eastern Indonesia and is located in the deep sea so that it still finds many obstacles in exploring oil and gas potential.
Chairman of the Investment Committee of the Association of Oil and Gas Companies (Aspermigas), Moshe Rizal said, to explore the deep sea, the government cannot only rely on Cooperation Contract Contract Contractors (KKKS) but the government must also be active in exploring and completing seismic data.
"Indeed, Indonesia's potential is quite large, only there are no more low hanging fruit. It takes infrastructure that must be built and from the data side, the government must also develop it," Moshe said in an energy Corner, Monday, February 13.
Moshe added that Indonesia needs to boost domestic oil and gas lifting through production schemes in order to attract big investors. In addition, the Government also needs to increase data availability.
"This is what we have to do. We are still struggling. I see that the government is now quite flexible in providing incentives and the terms and contract conditions are also simple, we are also competing with foreign countries," Moshe continued.
Moshe further said that Indonesia is still losing in providing incentives to attract investors to invest. According to him, other countries may have potential that is not as big as Indonesia, but because it provides convenience for investors so that it will be more attractive than Indonesia.
"They also need investors. They also provide incentives that may be more attractive than us. The reserves may also not be as big as ours, but the convenience provided may be more attractive. This is what we have to pursue," Moshe concluded.
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