JAKARTA. The Indonesian government is preparing a stimulus to encourage and increase investment in the upstream oil and gas sector, amidst the COVID-19 crisis.
Agung Pribadi, Head of the Communication Bureau of the Ministry of Energy and Mineral Resources (ESDM), said that at present, many oil and gas Working Area (WK) auctions have been postponed, since the Indonesian government is pushing various industrial sectors to implement Work From Home (WFH) and social distancing policies.
"At present, the preparations for the Phase I Conventional Oil and Gas WK Auction/ 2020 is still ongoing. The government is also finalizing the best policy, "said Pribadi through written statements on Thursday (9/4) today.
In addition to the COVID-19 pandemic, the low global crude oil price is also a reason for the government to postpone the auction. Regarding stimulus, the Ministry of ESDM is still conducting a limited study of a number of clauses in the auction agreement. (KR/AR)