PRESS RELEASE: Indonesia will be Key in Driving Future Global Growth - CLOSING

A Call to Action to Establish Investor-Friendly Ecosystem

JAKARTA, 17 May 2013 - The Indonesian government, once again, emphasized its commitment in providing the much needed support and infrastructure to all business players in the oil and gas industry, to increase exploration and production activities in the country.

Speaking at the closing ceremony of the 37th Indonesian Petroleum Association (IPA) Convention and Exhibition today, the Vice Minister of Energy and Mineral Resources (ESDM) of Indonesia, Susilo Siswoutomo, said the government is really serious in supporting the industry.

"The President has given instructions to the Ministry of ESDM and other related government institutions, during the opening ceremony of the 37th IPA Convex, to take necessary steps towards improving the investment climate in the country, including streamlining the bureaucracy process and we will follow the instructions. But, the industry needs to also make it happen. The industry has to work very hard to achieve the government's target," said Susilo. "The promises have been given, now it is time to realize all," added Susilo.

President of the Indonesian Petroleum Association (IPA), Lukman Mahfoedz, in his speech reiterated the important message from President Susilo Bambang Yudhoyono saying that the government acknowledged the needs from the industry on the clarity, consistency and certainty to support the enhancement of the exploration. "The President has also committed to provide incentives to support explorations and EOR programs," Lukman further added.

One of the key takeaways during the plenary sessions is that the future global growth will gravitate towards Asia in terms of investment and consumption, with Indonesia as an emerging player. All trends point to the fact that global growth would centralize in Asia, including growth in population, global economy, energy demand and trade flow.

"There is a global shift towards Asia in terms of consumption and investment, therefore, the trend highlights the urgent need for new policies and incentives to secure the country's energy supply," said Lukman. "This is a critical time to focus on key issues which includes long-term investment needed to boost the country's oil and gas reserves, to ensure sustainability of future energy supply, especially in meeting the rising demand of energy."

The Convex brings together key stakeholders in upstream oil and gas industry, including policy makers, regulators and other government agencies, investors and service sectors to drive more investment into the country.

In his speech, Bambang Istadi, Chairman of this year's Convex stated that he is very pleased with the positive turn out this year. One of the achievements is record number of participants, which include visitors, exhibitors, students, and journalist, totaling 16,128 people, or double than last year's Convex. "The number of registered participant grew significantly during the three-day convention to over 3200. This showed enthusiasm from target audience and the general public to take part in the largest oil and gas event in the region, and a reflection of the importance of the sector" said Bambang.

"We would like to express our deepest gratitude for the support provided by all parties involved that has made this event a great success," said Bambang.

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