IPA Ethics & Compliance Committee held an Annual Gathering

ECC Event-small

[JAKARTA] The 2nd IPA Ethics & Compliance Committee Annual Gathering was conducted at the offices of BP Indonesia on Wednesday 19 September 2018. The theme of the event was “Government Relations and Commercial Dealings in the Oil and Gas Industry: The Perspective of Corporate Crime and Liability” and this important gathering was attended by 75 participants. The main speaker was Mr. Laode.M. Syarief as Commissioner of KPK and other speakers were Mr. Dadang Trisasongko as General Secretary of Transparency International Indonesia (TII), and Mr. Tenny Wibowo, member of the IPA Board of Directors.


Closing Session: 42nd IPA Convex Ends with a Call for Closer Partnership


The 42nd Indonesian Petroleum Association Convention and Exhibition (IPA Convex) ended today with both regulator and industry executives in agreement that forging a closer partnership is essential to build a better future for the upstream oil and gas industry. “Let’s work together and (be) more efficient,” Amien Sunaryadi, Chairman of the Special Taskforce for Upstream Oil and Gas Business Activities (SKK Migas), said in his closing speech.


Sensitivity and Flexibility Important to Improve Upstream Oil and Gas Competitiveness


A panel of experts speaking at the 2nd plenary session of the 42nd Indonesian Petroleum Association Convention and Exhibition (IPA Convex) today shared a similar view that sensitivity and flexibility from the regulator are key in forging a productive partnership with PSC Contractors, thus improving the nation’s global competitiveness.


President Widodo: Streamlining of Upstream Oil and Gas Bureaucracy Will Continue


The government will continue to streamline rules and regulations related to the upstream oil and gas industry in a bid to attract investors, President Joko Widodo said during his opening speech at the 42nd Indonesian Petroleum Association Exhibition and Convention today. “Our regulatory (environment) is still less conducive to attract investment. It is confusing and complicated,” admitted the President.


Upstream Oil and Gas Industry Needs Continuous Collaboration


The government and industry players must collaborate continuously in order to forge a better future for the upstream oil and gas industry and improve Indonesia’s competitiveness on the global stage, according to a panel of experts at the first plenary session of the 42nd Indonesian Petroleum Convention and Exhibition today. 


IPA will hold the 2018 Lucheon Talks

[JAKARTA] It has become our tradition that each year the Indonesian Petroleum Association (IPA) invites the Chairman of SKK Migas to make a presentation on last year’s achievement and the outlook of the upcoming year for the Upstream Oil and Gas Industry.
The IPA is honored to have Chairman of SKK Migas, Mr. Amien Sunaryadi, as the speaker at the 2018 IPA Luncheon Talk with subject “2017 Achievement of the Oil and Gas activities and Outlook for 2018”. (Click here for details)


IPA Participated in IBIC 2017

The IPA Board of Director, Tenny Wibowo, representing the IPA President, attended the International Business Integrity Conference (IBIC) 2017 held by Komisi Pemberantasan Korupsi (KPK), at Bidakara Hotel, Jakarta, on Tuesday 12 December 2017.
Along with the IPA, there were many speakers who attended the conference, namely: Basaria Panjaitan (KPK), Muhammad Atok Urrahman (Deputy Chairman of SKK Migas for Business Support), Susyanto (Secretary to DGOG), Firlie Ganindito (National Industry and Trade Chamber), Kombes Pol. Juhartana (Wakil Dir. Ekonomi Baintelkam POLRI), and Royal Canadian Mounted Police.
The IPA is one of the National Advocacy Committee members for Oil and Gas group. (PS)

The Schlumberger Foundation Faculty for the Future Fellows & Alumnae Forum


[BANDUNG] The Faculty for the Future program, a flagship program from Schlumberger Foundation, awards fellowships to women from developing and emerging economies to pursue PhD or Post-doctorate studies in science, technology, engineering and mathematics (STEM) disciplines at leading universities worldwide. The fellowships represent the Schlumberger Foundation’s long-term investment in a community of highly qualified role models who help narrow the gender gap in STEM disciplines by inspiring more women to study science. 



[JAKARTA] The upstream oil and gas industry in Indonesia throughout 2017 has still been quite challenging for oil and gas companies. Although the world oil price has experienced a slight increase, the price has remained relatively low over the last three years and is not predicted to change much up to the end of the year. "On a global scale, the oil and gas companies are also continuing to make changes to their operational activities and investment plans," said the President of the Indonesian Petroleum Association (IPA), Christina Verchere, at the 46th Annual General Meeting 2017, Jakarta on Wednesday 6 December 2017.
Here in Indonesia, exploration activities can be said to have decreased significantly with a lack of participants in the recent working area bid round offered by the Government. "But we have to wait for bid round results that have been extended until 31 December 2017 to see the final outcome," she said.
In addition, based on the National Energy Plan (RUEN) document stipulated in the Presidential Decree (Perpres) No. 22 Year 2017, there are two activities that must be performed to meet the future energy needs of the country, namely: Exploration and Enhanced Oil Recovery (EOR). Therefore, the IPA hopes that the Government of Indonesia can make regulations that are able to attract upstream oil and gas investment into the country.
In early 2017, the Government of Indonesia, in this case the Ministry of Energy and Mineral Resources, issued the Ministerial Regulation (Permen) No. 8 Year 2017 on the Gross Split PSC. This regulation is intended to eliminate the cost recovery mechanism of the PSC Contract between the Government and PSC companies.

After a series of discussions involving the IPA and relevant stakeholders, the Government of Indonesia issued the MR 52/2017 as the improvement on the MR 8/2017. Two significant things changed as is found in MR 52/2017, namely: changes of progressive and variables split, and the opening of incentive limits which the Minister can provide to maintain the economic level of a working area.

Another achievement that is considered significant by the IPA in 2017 is the issuance of GR No. 27 Year 2017 which is a change from the GR 79/2010. Compared to the GR 79/2010, this new regulation does provide some improvements especially for contracts after 2010. But such improvements are not as attractive as the Assume and Discharge principle as for contracts pre-2010.

In addition to being involved in the drafting of regulations, the IPA has also recorded success at the 41st IPA Convention and Exhibition held on 17-19 May 2017, at the Jakarta Convention Center. As part of the event, the IPA also published a series of infographics describing the current condition of the upstream oil and gas industry in Indonesia.

Finally, the 46th Annual General Meeting also introduced the IPA Supervisory Board and the Board of Directors for 2018. The structure of the IPA Supervisory Board and the Board of Directors is shown below:
Supervisory Board
Evita Herawati Legowo 
Board of Directors
President - Ronald Gunawan, MEDCO ENERGI INTERNATIONAL, TBK, PT 
Vice President - Dan L. Wieczynzki, EXXONMOBIL CEPU LTD. 
Vice President - Bijan Agarwal, CONOCOPHILLIPS (GRISSIK) LTD. 
Secretary - Christina Verchere, BP INDONESIA 
Treasurer - Tumbur Parlindungan, SAKA INDONESIA PANGKAH LIMITED
Director - I.Tenny Wibowo, SANTOS (SAMPANG) PTY. LTD. 
Director - Nico Muhyiddin, INPEX CORPORATION
Director - Fabrizio Trilli, ENI INDONESIA
Director - Arividya Noviyanto, TOTAL E&P INDONESIE
Director - Gunung Sardjono Hadi, PERTAMINA (PERSERO) PT – PHE
Director - Charles A. Taylor, CHEVRON INDONESIA
Director - Kevin S. Moore, HUSKY ANUGERAH LTD.
The Supervisory Board and Board of Directors will start working with effect from Dec 6, 2017, supported and assisted by 12 existing committees containing representatives from oil and gas and service companies operating in Indonesia. (PS)

Government Postponed the Oil & Gas Blocks Tender

[JAKARTA] The Ministry of Energy and Mineral Resources has postponed the tender of oil and gas blocks under the gross split scheme, while awaiting the government regulation on the tax on gross split contracts. Director General of Oil and Gas at the ministry, Ego Syahrial, announced that the deadline for submission of bid documents under the direct and regular tender schemes had been extended, from 27 November to 31 December.
Ego said that the deadline had been extended awaiting finalisation of the draft government regulation on the gross split tax regime. One of the key points in this regulation concerns carrying tax losses forward for ten years. Another key area is the conversion of tax paid into additional profit share. Ego added that the extension notwithstanding, 20 documents have been accessed or purchased. The 20 documents are for the ten conventional oil and gas blocks that are up for tender.
Along with Ego, the press conference also attended by the SKK Migas Chairman, Amien Sunaryadi, and the IPA Director, Ronald Gunawan. "The IPA gives the highest appreciation to the Government of Indonesia, in this case the Ministry of EMR, which has given special attention to  Indonesia's upstream oil and gas industry in terms of issuance of certain regulations which impact to the regulatory certainty and national oil and gas competitiveness in the global market," Ronald said.
In this regard, he explained, the upcoming taxation regulation on PSC Gross Split, which will be formed as a Government Regulation (GR) with the involvement of relevant government institutions as well, will provide the high regulatory certainty that is needed. The IPA hope that this GR will be issued soon in order to increase the PSC Gross Split competitiveness and regulatory certainty as required. (katadata/PS)