| IPA urges immediate cost recovery bill approved |
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| Friday, 30 July 2010 11:56 | |||||||
Page 1 of 2 JAKARTA - The oil and gas entrepreneur who joined in the Indonesian Petroleum Association (IPA) to meet Vice President Boediono and asked the government to immediately ratify the RPP cost recovery to provide legal certainty of investment in the sector.The oil and gas businessman gives advice to the Vice President Boediono to immediately revoke the provisions barring (capping) cost recovery through government regulation plan (RPP) or higher rule. Spokesperson Vice President Yopie Hidayat argued that oil and gas entrepreneurs also stated that some of delayed investment plans due to regulatory uncertainty both at central and local government levels. "They [oil and gas businessman] said that investment interest in Indonesia is very big, but they expect certainty in business, do not be fickle. Suppose that relates to cost recovery, so there is no capping, "he said today. A total of 12 oil and gas entrepreneur to meet Vice President IPA members Boediono to convey the results of the 34th Oil and Gas Convention in May. Attending the meeting were Chairman of the IPA Ron Aston, and his handler, Coordinating Minister Hatta Rajasa as well as Director General of Oil and Gas Ministry of Energy and Mineral Resources Evita Legowo. Yopie said the restrictions on cost recovery, then the same means to the investment restrictions. In fact, he said, oil production is following the investment. Capping cost recovery is one of the tricks to manage the burden of state oil and gas upstream activities, in the middle of the oil production continues to sag. The policy began to be applied beginning last year. However, due to the policy of investment interest be dropped. The government long since abolished it by issuing a new regulation, but until now has not been published. "What needs to be explained to the public, cost recovery is in the form of investment. Restrictions on cost recovery, together with investment limit and reduce oil production. " Hatta Rajasa said Indonesia also did not know the limitations in determining cost recovery. Now, he said, the government is still discussing the plan of oil and gas law to find the best way about this problem. Hatta states now existing relevant government regulations barring the removal of cost recovery. "That is not to get entry into the rules retroactively, because it means not honoring the old contract," he said. By: A. Dadan Muhanda (Bisnis.com)
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Legitimacy & Law
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