VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The government has promoted a new gross split scheme in oil and gas contract to Asian industries, during the Offshore Technology Conference Asia (OTCA), in Kuala Lumpur on Wednesday.

"This year, we have offered 26 new oil and gas contracts of work to investors," an expert staffer for strategic planning of the Energy and Mineral Resource Ministry, Yudo Dwinanda, stated. The ministry, he noted, has improved the regulation on production-sharing contract under gross split scheme for upper stream oil and gas business. The government has issued ministerial regulation no. 52/2017 on the amendment of ministerial regulation no. 8/2017 on gross split contract. 

Yudo remarked that the ministerial regulation is aimed at addressing various issues that have hampered the investment in the sector, while investment has been a key for economic growth.

"The gross split scheme is one breakthrough to overcome the problem, as a substitute for regulation on Production Sharing Contract (PSC)," he added.

Among the stimulus in gross split scheme would be fiscal incentive. On the other hand, the government has revoked 90 regulations, which were seen to have hampered investment, and simplified the licensing process to create a conducive climate for investment. However, the government did not set such a high target for oil and gas contract of work in 2018.

"Of the total 26 contracts of work we offered, it would be good to get at least 13 contracts, or half of it," he explained.

The government did not make any offer during 2015 to 2016 period, while in 2017, it offered five contracts of work.

"So far, investors have shown a positive response, and it is not true that the gross split scheme is discouraging," Yudo revealed.

Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro has highlighted the importance of convincing foreign investors about potential areas of investment in Indonesia, so that they invest in the country.

"The point is we are seeking investment opportunities in infrastructure, from both strategic and financial investors. The most important aspect is we convince foreign investors that opportunities lie in Indonesia, and we already have a scheme and regulation in place that they could adopt," Brodjonegoro stated in Jakarta on Wednesday ( 21 March )

Earlier, the Investment Coordinating Board had held an Indonesian Infrastructure Investment Forum in London, the United Kingdom, and in Dublin, Ireland.  According to Brodjonegoro, the potential for investment from the United Kingdom and Ireland is still quite large, especially in the fields of finance and services. Ireland was selected to be the venue for holding the investment forum owing to the large migration of financial institutions. Meanwhile, opportunities to attract foreign investment from England are still quite large, especially in infrastructure and services.

"They are interested, but surely, most of them have never invested in Indonesia, so they need time to review projects in the pipeline and the scheme. Currently, we are in the follow-up phase. We need to make them understand the risks and potential areas of investment in Indonesia," Brodjonegoro explained.

The government is currently conducting intensive tourism development through the introduction of "the 10 new Bali."

The government has invited British and Irish investors, among others, to invest in Indonesia, with an alternative scheme of Non-Government Budget Infrastructure Financing. Indonesia was one of the promising investment destinations among the top five EU investment destinations in Southeast Asia for the 2007-2017 period. Indonesia ranks first, with 266 projects worth US$13,259.8 billion. The realization of British investment in Indonesia is still ranked eighth, below China, Japan, and France. (antara)

The government has targeted to complete the Jakarta-Bandung high-speed train construction project by 2020, slower than its previous target in 2019, State Enterprises Minister Rini Soemarno said. The high-speed train is expected to be commissioned in 2020, Soemarno stated during an inspection of the Walini Tunnel in West Bandung on Wednesday. According to the minister, the main hindrance for the project was the slow progress in land acquisition since 2016.

"If the first stage could run as scheduled, it would be impossible (to miss the target). We hope that the train could be commissioned in 2020," she remarked.

So far, the authority has finished the acquisition process of 56.5 percent of the 140-kilometer-long-project. The process would be continued and targeted to be completed in April.

The high-speed train project was carried out by PT Kereta Cepat Indonesia Cina (KCIC), a consortium of state-owned enterprises and China Railways, through a business-to-business plan. Construction of the tunnel has been started in Walini area of West Bandung and Halim Perdanakusuma area in Jakarta, while construction of the elevated railway has been started in another location. The two locations are strategic parts of the project, the minister added.

The high-speed train could reach a speed of 350 kilometers per hour, and it would only take 45 minutes to reach Bandung from Jakarta. The train will stop in four stations, namely Halim, Karawang, Walini, and Tegalluar stations. It would not use the existing railway but construct new ones to adjust with the train specification.

"The high-speed train could boost the economy along the Jakarta-Bandung corridor through the establishment of a new economic center for small and medium enterprises, as well as local economy," Rini noted, adding that in the future, similar trains would be operated in other regions too.

After the completion of the tunnel and elevated railway construction project, the company would start the development of installation track, including the signaling and telecommunication system. The installation stage is targeted to start by mid-2020 and finalized by the end of 2020. ( antara )