President Jokowi Considers Economic, National Benefits of Oil, Gas Partnership Contract Renewal

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 31 Januari 2023
Category: News
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Minister of Investment/ Head of the Indonesian Investment Coordinating Board (BKPM) Bahlil Lahadalia delivers a press statement at the Presidential Palace Compound, Jakarta, Tuesday (01/31). (Photo by: PR of Cabinet Secretariat/Rahmat)

In a bid to follow up on a number of partnership contracts in oil, gas, and mining production, President Joko “Jokowi” Widodo pushed for implementation of the contracts through effective legal mechanism by considering the benefits to the economy and interest of the state and the people.

The statement was made by Minister of Investment/Head of the Indonesian Investment Coordinating Board (BKPM) Bahlil Lahadalia in a press statement after a limited meeting led by President Jokowi at Presidential Palace, Jakarta, Tuesday (01/31).

Bahlil added that the meeting also discussed the urgency to review several partnership contracts in oil, gas, and mining production of several major companies such as Freeport, Vale, and British Petroleum (BP).

He went on to say that the Government would strive to oversee investment, which plays a major role in maintaining and stimulating national growth.

“Right now, it’s difficult to look for investors. We must really guard investment that is already made,” he said.

The Minister also affirmed the Government’s commitment to further encouraging investors in the downstream sector and to involving state-owned enterprises and regionally owned enterprises.

Therefore, involvement of state-owned enterprises and regionally owned enterprises will be mentioned as a condition to renew a contract, he added.

“The most important thing is to encourage the downstreaming process of gas and mining production and to involve state-owned enterprises and regionally owned enterprises so we can no longer provide an option [for the companies] to extend the contacts without involving them. The state must play a dominant role,” he remarked. (MAY/UN) (RAS/EP)

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