Jakarta, 21 August 2013 - The IPA and its members strongly support Good Corporate Governance in the oil and gas industry.
"Good governance is an important issue for oil and gas investors all over the world, including Indonesia, as it would create a good environment that is important to attract and to sustain investment in all business sectors " says Lukman Mahfoedz, the President of IPA.
Members of the IPA are committed to continue operating to the highest ethics and integrity standards and in full compliance with the Production Sharing Contracts and the applicable laws and regulations of Indonesia.
In regards to the recent bribery allegation case involving an oil trading company, the IPA regrets that it has created negative sentiment towards the upstream oil & gas industry. "Oil trading is not an upstream business and therefore is not related to the Production Sharing Contract system and Cost Recovery," says Lukman.
The IPA expects that government will ensure that upstream business process will work and function without disturbance. "The oil and gas producers still require all necessary and timely approvals in accordance with regulations for oil and gas liftings, to ensure no interruption happens in production," says Lukman.
IPA trusts that the case will not cause a slowdown in the approval process within SKK Migas and that governance and transparency of the management of the oil and gas industry will be improved.
"We hope that the case will not impact negatively the investment climate in Indonesia at a time when the country needs to grow investments to sustain oil and gas production" concluded Lukman.
For further information, please contact:
Dipnala Tamzil
IPA Executive Director
T: 021-5155959 ½E: dipnala.tamzil@ipa.or.id
About the IPA
- The Indonesian Petroleum Association (IPA) is a non-profit organization founded in 1971 which aims to bring the key players in the upstream oil and gas industries together to promote partnership, and communication within an industry that plays a vital role in Indonesia's national development.
- Through its 53 Company Members, 124 Associate Members and over 2000 individual members, the IPA represents around 90% of oil and gas exploration and production in Indonesia.
- The IPA Mission is to fully realize the hydrocarbon potential of Indonesia for the benefit of all stakeholders, investors, Government and the people of Indonesia
- The IPA provides a forum for members and new investors to exchange news, views, concerns and ideas about the industry.
- The IPA acts as partner to the governmental institutions by facilitating dialogue and communications between the industry and the Government of Indonesia.
- The IPA also promotes education and knowledge transfer within the industry and with the wider community.