Jakarta (ANTARA News) - Vice President Jusuf Kalla has called on state-run oil firm PT Pertamina to boost its domestic investment by encouraging the development of oil drilling installations.

"Instead of investing abroad, including those in Iran and Algeria, it would be better to invest in domestic oil development. Rokan Block has been taken over and so is the case with the Mahakam Block. The upstream industry must be stronger, for the downstream industry is already solid," Kalla remarked here on Wednesday.

The vice president reiterated that Pertamina should encourage the development of domestic oil drilling installation after the state-owned oil firm took over Rokan Block in Riau and Mahakam Block in East Kalimantan.

"Yes, we have to build the installation to manage (oil blocks) in Kalimantan and Riau that have been taken over by Pertamina," he added.

Pertamina will take over the operation of the Rokan oil block, the country`s second-biggest crude-producing field once Chevron`s operating contract expires in 2021.

The company will operate Rokan from 2021 to 2041 under a gross split production sharing contract.

Speaking in connection with the leadership of Pertamina`s new President Director Nicke Widyawati, Kalla praised her as a good leader for the company.

"Of course, she is good. How would we choose her if she is not good," he emphasized.

Minister of State Enterprises Rini Soemarno has named Widyawati as the new president director of Pertamina. The letter of appointment was delivered by Fajar Harry Sampurno, the ministry`s deputy for mining and strategic industry, here on Wednesday.

Also present on the occasion were Deputy Minister of Energy and Mineral Resources Arcandra Tahar and Pertamina`s President Commissioner Tanri Abeng.

Reporting by Fransiska Ninditya
Editing by Sri Haryati, Bustanudin

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Editor: Heru Purwanto
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