The industry plays a vital role as the driving force of the national economy, despite the unfavorable climate, to attract investment due to the global and local trends, such as the shale oil revolution, energy transition, and the low oil price, he stated.
"To make the industry more attractive, we need to speed up the formulation of an effective fiscal policy that could encourage investors to increase production and exploration in Indonesia to meet the target of one million barrels of oil per day and 12 billion cubic feet per day of natural gas in 2030," Tasrif noted during the Oil and Gas Investment Day here on Thursday.
According to research of oil and gas consultant firms, such as Woodmac and Rystad, Indonesia is still considered attractive for investment in oil and gas, with its prospective natural resources.
However, it will need to improve the fiscal system and reduce the risk.
"We have to be aware that we are competing with other world oil producers to secure investment. Hence, we must improve our investment climate," he remarked.
Head of the Task Force for Oil and Gas Upstream Business Activities (SKK Migas) Dwi Soetjipto emphasized the need for the government to accelerate formulation of a more effective fiscal policy to encourage investors to boost production and exploration in Indonesia.
President of the Indonesian Petroleum Association (IPA) Gary Selbie stated that the Oil and Gas Investment Day is expected to become a medium for investors to obtain more information on the latest developments in oil and gas investment in Indonesia.
The IPA believed that Indonesia's oil and gas industry still has positive prospects, with the emergence of a new exploration target in some regions of the country. Related news: Investment in Indonesia's oil, gas still attractive: Energy Ministry
Related news: SKK Migas upbeat investment in upstream oil and gas sector to increase
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