PRESS RELEASE: The 37th IPA Convention & Exhibition 2013 - OPENING

"Promoting Investment in a Challenging Environment"

The Region's Premium Oil and Gas Event Opens Today!

JAKARTA, 15 May 2013 - The 37th Indonesian Petroleum Association (IPA) Convention and Exhibition 2013 is officially opened today by the H.E. President Susilo Bambang Yudhoyono accompanied by the Minister of Energy and Mineral Resources Jero Wacik, Chairman of SKKMIGAS, Rudi Rubiandini, and IPA President, Lukman Mahfoedz.

This year convention and exhibition, held from 15 - 17 May 2013, carries the theme "Promoting Investment in a Challenging Environment", in accordance with today's landscape in Indonesia's upstream oil and gas industry. Indonesia needs large scale investment to explore, majority of which lie in frontier deepwater arena in eastern Indonesia, and to fully realize its remaining hydrocarbon potential through implementation of EOR (Enhanced Oil Recovery)/IOR (Improved Oil Recovery), amidst challenging regulatory environment and global economic conditions.

In his opening speech, President Susilo Bambang Yudhoyono emphasized the important role oil and gas sector plays in driving the national economic growth and that sustainable, long-term investment is needed to support the industry. "Investment in oil and gas sector is a long-term commitment which requires clarity, consistency and legal certainty. An ongoing effort to maintain and improve investment climate is an absolute priority for the government, in order to optimize the national oil and gas production," said President.

"I have instructed the Minister of Energy and Mineral Resources, the Minister of Finance and the Head of Investment Coordinating Board to streamline the bureaucracy process in the oil and gas industry and formulate the right incentives that will drive investment into the oil and gas sector, to enhance exploration and exploitation activities, as well as to increase recovery factor by implementing EOR programs," President Yudhoyono added.

"We are optimistic that the oil and gas sector in Indonesia is still a promising business, hence we invite you to invest in Indonesia, to form partnership in a fair and mutually beneficial manner", President concluded.

Jero Wacik, the Minister of Energy and Mineral Resources conveyed his belief that despite the challenges at hand, the oil and gas industry is on a positive trajectory and will continue to grow at a significant rate.

He also highlighted the importance of all stakeholders in the oil and gas industry to work hand-in-hand in creating a business climate that is pro-growth, pro-job, pro-poor and pro-environment. "The government will provide full support to both international and national investors who are committed in realizing these four strategic pillars, and hence striking the right balance between national interest and that of investors."

In his speech, IPA President, Lukman Mahfoedz stated that this year IPA Convention and Exhibition is aimed at converging solutions to increasing oil and gas investment in the country. "We believe the results of the IPA Convention this year will be extremely valuable to create conducive investment climate in upstream oil and gas industry, which will sustain Indonesia's economic growth in the future." This theme is also very relevant to IPA's program to support achievement of Presidential Instruction No. 2 of 2012 to deliver oil production of minimum 1.01 million barrels per day average, through intensive exploration activity, and implementation of Enhanced Oil Recovery (EOR)/ Improved Oil Recovery (IOR) programs. Lukman also added that in today's challenging situation, change of paradigm in oil and gas' governance is deemed important. "We have to strike a balance between short term gain and long term sustainable benefit for the country," said Lukman further.

"IPA is very encouraged by President Yudhoyono's and Minister Jero Wacik's statement that clarity, consistency, and certainty in legal and regulatory aspects is critical factor to sustain long term investment in upstream oil and gas sector in Indonesia," Lukman highlighted after.

IPA Convention and Exhibition, the largest in the region, 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. Experts from around the world will also share their best practices in exploration and production activities.

"This year, I'm proud to present Oil and Gas Theme Park, the jewel of the Convex, IPA's program to promote and to educate public, especially the youth, on oil and gas industry. The park features history, activities, equipment and development of oil and gas industry in Indonesia and I encourage you to visit the area," said Lukman. In addition to that, IPA also organizes writing competition for students.

Attracting more than 2,600 participants and 260 exhibitors in over 25,000 square meters of Jakarta Convention Center, the Convex showcases the newest technology, innovations and solutions from around the world. It is the platform of choice for professional and business networking. As such, over 10000 visitors, which include business and thought leaders, industry professionals and government officials are expected to attend this year's IPA Convention and Exhibition, making it the largest in IPA's history in terms of exhibitors, delegates and floor space.

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