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Luhut to lead task force to increase offshore oil and gas projects
Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan will lead a task force aimed at improving the investment climate in the upstream oil and gas sector.
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Water world: The Pertamina Hulu Energi (PHE) Offshore North West Java (ONWJ) oil and gas rig is pictured on April 2, 2023, in the waters off Indramayu, West Java. (Antara/Aditya Pradana Putra)
T
he government is forming a task force dedicated to improving the investment climate in the oil and gas industry, particularly to pave the way for more offshore drilling, as the country grapples with declining production and reliance on foreign shipments as a net oil importer.
Coordinating Maritime Affairs and Investment Minister Luhut Panjaitan said on Wednesday that Indonesian regulations on oil and gas are too complicated, thus leading to a lengthy approval process that hampers investment in upstream industries.
“It shouldn’t take days just to apply for a permit,” Luhut said, as quoted from state-run news agency Antara.
Read also: Chinese firms begin study on oil and gas potential in eastern Indonesia
Luhut said the current regulation did not reflect the increasing trend of offshore oil and gas projects in many parts of the world, which have a huge untapped potential.
Jodi Mahardi, undersecretary of maritime and energy sovereignty at the Office of the Coordinating Maritime Affairs and Investment Minister said on Wednesday that Luhut will head the task force, which also involves cross-ministerial coordination, as quoted from Bisnis.
The task force will streamline licensing process and improving profit-sharing schemes to attract more investors, especially for deepwater drilling.
