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Indonesia Seeks More Investors

Energy minister seeks more incentives to draw foreign money to this LNG hotbed...

Indonesia's Minister of Energy and Mineral Resources has urged the cabinet to give a higher incentive for investors in the fields of oil and gas to beef up exploration. Purnomo Yusgiantoro suggested to change the current production contract splits in order to benefit investors.

The Indonesian government had revoked the free import duty facilities for the oil and gas sectors, which increased the cost of the industrial production, he said.

"I have proposed to change the splits. We must give them more incentives," Yusgiantoro told reporters after a cabinet meeting at the State Palace.

The current split of 70 : 30 percentage for the gas and 85 : 15 percentage for the oil, are more favorable for the government, he said.

"These should be changed to better terms for investors," Yusgiantoro noted.

But he gave no further details of the changes he had sought.

Indonesia is one of the world's biggest LNG exporters and ships some 25 million tons annually to South Korea and Japan.