Local Oil-Gas Businesses Seek Govt Support
5 December 2014 06:42 WIB
TEMPO.CO, Batam – The Association of Oil and Gas Industry Employers (Guspenmigas) asked the government to give preferential treatment to local oil and gas supporting businesses. Guspenmigas chairman Willem Siahaya said the excessive use of imported goods by oil and gas companies has made things worse for local businesses.
Willem said that local oil and gas supporting businesses generate US$20 billion annually. However, the contribution of these local entrepreneurs is only 35 percent. Difficulties in getting local customers make the businessmen opt to export their goods.
"However, with the recent months' crude oil prices decline, their exports dropped," he said in Batam yesterday.
Ferry Yahya, the Industry Minister's expert staff in marketing and increased use of domestic production, said the government is preparing rules to improve local products. Once the rule is issued, the use of imported products will be limited through tight auctions and all bidding processes will be required to invite local producers.
Ferry is certain that once the rule is applied the use of local products in oil and gas supporting businesses will reach 60 percent. "This rule will also apply to SOEs," he said.
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