T

he theme, “Promoting Investment in a Challenging Environment”, of the upcoming Indonesian Petroleum Association (IPA) Convention and Exhibition (Convex), is an appropriate one as the organization rises to today’s challenges. It is expected to bring together stakeholders to collaborate and coordinate in finding solutions to attract new investment in the oil and gas sector in Indonesia.

 The Convex, to be held at the Jakarta Convention Center (JCC) from May 15-17, will also provide a fresh perspective and awareness for the public on the activities of the industry in Indonesia.

IPA has played an important role in supporting the government to promote investment in the oil and gas industry, as well as working together with the government and various parties in formulating the best solutions for the various challenges in the industry.

“The challenge in the near future is to create a balance between the national interest and that of the investor,” said IPA’s president Lukman Mahfoedz in Jakarta recently.

He added that it is vital that all stakeholders – government institutions, the central and regional administrations, NGOs, the public as well as the industry itself – collaborate, cooperate and coordinate for the oil and gas industry to be maintained as the backbone of the country’s economic growth.

“This sector is the largest contributor to the country’s revenue, and it has an important role in supporting Indonesia’s economic growth and it is also important for the industry’s position in Asia Pacific,” he said.

Issues remain in the investment climate due to the fixed fiscal system, wherein revenue sharing between the contractor and the government is fixed in advance, complicated bureaucratic procedures for permits or licenses, land clearance and various overlapping problems that deter investors.

The 37th IPA Convex organizing committee chairman, Bambang Istadi, said he was committed to presenting leading both domestic and international experts to share their experiences.

“They have many similarities with Indonesia in the matter of oil and gas reserves so we expect all of us can learn from them,” he said of the foreign speakers.

The three-day IPA Convex will present three plenary sessions discussing the world’s prospects for the oil and gas industry, the industry’s success stories and how the industry can increase further larger investments in the current situation to get the most advantage of Indonesia’s potential. There will be 113 papers presented by professionals, 32 by students and 33 posters during the entire 36 technical sessions and there will be about 250 participants in the event occupying an area of 25,000 square meters.

Speakers will include Director General Of Oil and Gas Eddy Hermantoro, head of SKKMIGAS Rudi Rubiandini, Pertamina president director Karen Agustiawan, Coordinating Minister for the Economy Hatta Rajasa, Investment Coordinating Board (BKPM) head Chatib Basri and Trade Minister Gita Wirjawan.

Among the foreign speakers are Oman’s Minister for Oil and Gas Mohammed bin Hamad Al Rumhy, Credit Suisse managing director Christian Deiss, chairman of FACTS Global Energy Fereidun Fesharaki and managing director First Reserve Asia Limited Jamie Paton.

There will also be a number of short courses, technical programs, exhibition of sophisticated technology and other interesting activities to build stronger cooperation among the industry’s stakeholders.

Youth is served

IPA Convex is also reaching out to the younger generation through photography and essay writing competitions to discover their viewpoints on the industry.

The first ever “Oil and Gas Theme Park” will also be held as an unforgettable experience for visitors.

In the theme park, visitors will be able to actually feel the experience of being on a drilling rig as well as areas of corporate social responsibility actions, with examples of community development implemented by the industry.

“Many oil and gas companies have been reluctant to show their CSR activities, but in this event it will be clear that they contribute much to the communities’ development and potential. All these things will give direct insight for visitors on the industry’s daily activities,” Bambang said.

The number of visitors is expected to increase by around 30 percent from about 8,000 last year.

IPA is a non-profit organization established in 1971 with the objective to embrace the domestic major players to promote the importance of this sector for the country’s economic development. It has 52 members, 111 contractors as partners and thousands of individual members.