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Thursday, February 10, 2011

Indonesia's Oil and Gas Investments 2nd Worst

VIVAnews - Canada-based independent research firm Fraser Institute launched a report stating that Indonesia is listed second poorest country in oil and gas investments across Asia and Pacific. Indonesia is only better than Timor Leste, its former province.

In the survey Global Petroleum Survey, Indonesia is ranked 111 out of 133 countries on oil and gas invetsments along 2010, which is lower than Papua New Guinea, Philippines and Brunei Darussalam.

Oil observer Kurtubi said the plain investment ranking is due to corruption as well as difficult access to oil data.

"[Alleged] corruption is everywhere taking, for example, cost recovery," said Kurtubi today, Feb 9. "Why did oil production go down while on the other hand cost recovery goes higher? he said.

The report says Law on Oil and Gas No.22/2001 is no longer appropriate and sides with oil and gas investors. "Within the last 10 years, new investments and fields are not available," Kurtubi said quoting the report.

In addition, Article 31 of Law on Oil and Gas explains that investors are obliged to pay various taxes during the exploration period. In fact, the old law only requires investors to pay taxes after finding and producing oil and gas.

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