Ramba Energy Sees Lemang Project as a Game Changer for Firm

With regards to foreign oil and gas investments in Indonesia, Ramba noted that issues like cost recovery have contributed to their decline in recent years.

“Every dollar you want to spend in Indonesia needs to be approved … that process can sometimes get drawn out,” Jol said.

However, the firm believes foreign petroleum investments will rise in Indonesia as it is in alignment with the government’s objective. As such, it is possible that current processes required by the country’s oil and gas authorities could be streamlined and “there could be better incentives for acreages with more risks and tax holidays.”   

Meanwhile, the upcoming presidential election in Indonesia is not likely to have much impact on the petroleum industry, with Ramba noting that business has been as usual in its dealings with both government officials and SKK Migas during this period.

The recent sentencing of former SKK Migas chief Rudi Rubiandini to 7 years imprisonment for graft can be positive for the Indonesian petroleum industry.

“When the case first broke out, it was quite negative. But if you looked at it in a positive light, a sentence was handed down and the turnaround was quite quick … [it] showed what Indonesia has always said for a number of years that they are committed to tackling this issue. And this showed that they are,” Jol explained.