TEMPO.CO, Jakarta - The government, through Energy and Mineral Resources Ministry (ESDM), attempts to boost exploration of earth`s oil and gas to increase productivity.
The government keeps trying to increase investment, especially for oil and gas exploration, because since 2014, investment in exploration activities in both exploration and exploitation working areas (WK) keep decreasing; from the total cost of exploration Rp31.01 trillion in 2014 to Rp13 trillion in 2016.
"Exploration is the future of upstream industry of oil and gas since the activities of finding new reserves are intended to increase production of oil and gas in the future." The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) deputy chairman Sukandar said in Jakarta.
In order to increase investment in exploration, the government has carried out a number of improvements including issuing Government Decree (PP) No. 27 /2017 that stipulates free goods import duty, tax incentives, and other incentives namely credit investment, DMO Holiday rewards, and accelerated depreciation.
In addition, the government has also provided eight additional incentives to PSC (Production Sharing Contract) Gross Split as stipulated in ESDM Ministerial Decree No. 52/2017 on Revision to Gross Split Profit Sharing. Work contract (KKS) contractors’ share is increased as it can be seen from exploitation cumulative value, the rice of oil and gas, the high content of hydrogen sulfide (H2S), and infrastructure availability.
ANTARA
