Saturday, February 11, 2012

US firms plan to invest $25 billion in oil and gas


Hans David Tampubolon, The Jakarta Post, Jakarta | Sat, 02/11/2012 11:09 AM

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The executives of major United States-based companies have expressed an interest in increasing their investments within various industries in Indonesia, ranging from the film industry to high-cost oil and gas exploration and production.

Finance Minister Agus Martowardojo on Friday said that the US businessmen have promised long-term investments of up to US$25 billion in the oil and gas industry alone during a series of meetings with US-ASEAN Business Council delegates this week.

“They [the delegates] say that they will try to put more investment in the oil and gas industries by conducting more explorations and by preparing at least US$25 billion of investment in the next couple of years,” Agus told reporters in Jakarta.

Agus said that the delegates also expressed an interest to invest in other sectors and ventures in 
Indonesia.

“The most highlighted areas are not only concerned with heavy equipment and technology investments but we also talked about a financial inclusion initiative, which will provide financial access to individuals who remained untouched by financial service institutions,” he said.

“The delegates also expressed an interest to invest in the film industry, the chemical industry and various other industries,” he added.

Agus said that the delegates also expressed concerns over the need for better policies to facilitate investment in Indonesia.

“We talked a lot about taxation, customs, the stock market and fiscal policy issues. They said that they were happy with the fact that we have managed to settle numerous taxation issues and they wanted to maintain the current level of communication with us,” he said. “Generally speaking, we had a great meeting and we plan to develop more communication with US businesses that are already established in Indonesia or those that are interested to enter our country at least once in the next six months.” 

The largest-ever US-ASEAN Business Council trade mission visited Jakarta this week.

The council comprises of 75 members who represent 35 companies — ranging from major corporations to small- and medium-sized businesses — met with Vice President Boediono and numerous economic ministers, such as Agus and Trade Minister Gita Wirjawan, to talk about the possibility of future cooperation between the US firms and the Indonesian government involving infrastructure development, electricity generation, the provision of financial services and other major areas.

Indonesia has become a major attraction for foreign investors, who are drawn by the potential of Southeast Asia’s largest economy, which managed to record substantial economic growth throughout 2011 despite of the deepening global crisis.

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