Jakarta moves to limit foreign ownership in local oil sector

Jakarta: Trying to give domestic firms greater opportunities, Indonesia has introduced new regulations restricting foreign investment in drilling, maintenance and construction in the oil industry.

Limits have been put in place for foreign ownership of oil platforms, pipelines, maintenance companies, drilling firms and storage.

Under the new rules, foreign ownership of offshore oil and gas drilling services is limited to 75% from 95%.

The mining ministry told Reuters the new rules would not impact projects already underway and could take as long as five years to fully implement.

Indonesia has been moving rapidly to boost domestic expertise in handling its raw materials. A recent example was a mineral ore export ban in January to force miners to process their raw materials in the country.  [07/05/14]




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