"I would ease issuance of exploration permit and give an additional incentive," Minister of Energy and Mineral Resources Jero Wacik said.
Nusa Dua, Bali (ANTARA News) - Indonesia has offered special incentives to investors wishing to invest in the energy field in the country.

"I would ease issuance of exploration permit and give an additional incentive," the country`s minister of energy and mineral resources Jero Wacik said at the 12th Gas Information Exchange (Gasex) meeting here on Tuesday.

The minister said door is opened widely for investment in the field of energy with regard to developing new and renewable energy sources in connection with increasing world demand for oil and gas.

He said Indonesia has potential new and renewable energy sources for development such as geothermal energy source which reaches 10,000 megawatt, hydro-power, solar and bio-mass energy sources.

"In view of that we are inviting all companies that have capability in the energy field to invest in Indonesia. We are grateful we have almost all kinds of energy sources," he said.

Jero Wacik said if efforts to develop new and renewable energy sources failed the government would prioritize energy supplies for domestic needs but if they were successful exports of gas supply in the country would be continued.

To investors wishing to invest in the energy sector the minister gave four conditions that they should meet namely they have to grow the country`s economy, create jobs, alleviate poverty and safeguard the environment.

"If they agree to meet the conditions we would give them incentives and facilities but they do not they had better leave," he said.

On continuing gas exports by several exploration companies while domestic demand is increasing the minister said that the issue would be discussed with operators in the country.

As a result for an example he said the British Petroleum that conducts gas exploration in Papua has agreed to change the agreement.

"Initially 100 percent of the exploration results are exported but after I negotiate with them telling them about the increasing need of gas in the country they in the new contract are willing to allocate 40 percent of their production for meeting domestic needs," he said.(*)

Editor: Heru Purwanto
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