"We are currently forming a task force for that sector," he said in a press conference after opening the 2nd International and Indonesia Carbon Capture and Storage (IICCS) Forum 2024 here on Wednesday.
Pandjaitan also discussed complicated regulations related to upstream oil and gas investment.
According to the minister, the complexity of these regulations resulted in protracted approval times, ultimately complicating investment in the upstream oil and gas sector.
"Our regulation should not be complicated. It should not take days on end to get approval," Pandjaitan remarked.
He said the complicated regulations in the upstream oil and gas sector were issued when oil and gas were still easily found in Indonesia.
"Now, there are many large oil and gas companies in the deep sea, while the regulations are still the same. We should immediately fix it," the minister pointed out.
Based on this phenomenon, he formed a task force to improve regulations to facilitate investment in the upstream oil and gas sector.
"Jodi, is currently revising the regulation. We are talking to the Ministry of Finance as well," Pandjaitan said, referring to the ministry's Deputy for Coordination of Maritime Sovereignty and Energy, Jodi Mahardi.
Apart from problems related to complicated regulations, he also drew attention to Indonesia's incentives. According to the minister, Indonesia's incentives are not as attractive as those offered by countries in Africa.
"Africa has given (a profit sharing ratio) of 60:40, while we still have 85:15," he noted.
He pointed out that oil and gas companies have a variety of choices for where to invest, and not only in Indonesia. Hence, he said, Indonesia should reflect and learn from other countries to become an attractive investment destination.
"The regulations we make, the incentives we provide, must be attractive to people," he emphasized.
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Translator: Putu Indah S, Resinta Sulistiyandari
Editor: Tia Mutiasari
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