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Economy in brief: New IPA chief sees no key change in 2018
Newly appointed Indonesian Petroleum Association (IPA) president Ronald Gunawan expects no major changes in the oil and gas industry next year
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ewly appointed Indonesian Petroleum Association (IPA) president Ronald Gunawan expects no major changes in the oil and gas industry next year.
Speaking to reporters during a press briefing at the association’s 46th annual meeting in Jakarta on Wednesday, Ronald said legal uncertainties caused by tax regulations might still hamper the investment climate in the oil and gas sector.
This issue had to be addressed by the government in order to lure more investment in the country’s upstream oil and gas sector, he added.
“We are not sure yet about the interests of investors in Indonesia. We will watch the investors’ participation in the upcoming bidding round of new oil and gas blocks by the end of this year,” Ronald said.
Ronald, the director of Medco Energi Intrenasional Tbk. (Medco), was elected the president of the business group to replace Christina Verchere of BP Indonesia during the annual meeting. It also named Tumbur Parlindungan, the president director of PT Saka Energi Indonesia, as IPA secretary, a position previously occupied by Ronald.
During the meeting, the association also acknowledged that oil prices, which dropped to about US$40 per barrel in October, have shown signs of recovery in the last two months.
West Texas Intermediate crude futures were traded at $57.37 a barrel on Wednesday.
Verchere, meanwhile, estimated that the oil prices would hover between $50 to $60 per barrel next year.
