Sunday, 16 June 2019 | 11:30 WIB

Energy Ministry: Innovations, New Ideas Necessary to Successfully Sell Oil and Gas Blocks

Deputy Minister of Energy and Mineral Resources (EMR) Arcandra Tahar

JAKARTA, NNC - Deputy Minister of Energy and Mineral Resources (EMR) Arcandra Tahar stressed that in order to sell oil and gas blocks, innovation is necessary, not just fixated on old strategies that are irrelevant that make investors reluctant to invest in Indonesia's oil and gas sector.

According to him, the marketing strategy also needs to be implemented not only scientific images and data that are displayed to potential investors who ultimately are not interested in investing in the oil and gas sector.

"The methods used to sell oil and gas blocks should not be just scientific images, but also include marketing elements. The old way has yet to stimulate people to think more about investing, there is a need to find ways to market our oil and gas blocks, not just displaying scientific data, it is not yet on the next step, the data [used] to sell it," Arcandra said at the Seminar on Hunting for New Oil and Gas Fields in Indonesia on Friday (11/16/2018).

Arcandra hopes that there will be new innovations in selling oil and gas blocks because the old cooperation model has proven to be less effective.

"My hope is that the pattern of work that we have done so far must be changed, because the old ways have proven to be less effective in selling oil and gas blocks, so we have to find new ways, ideas, innovations that need to be done so that we get results as we expect, namely selling oil and gas blocks, not selling data," he added.

Meanwhile, innovations and new ideas for marketing oil and gas blocks must be carried out so that potential investors are interested in investing in Indonesia.

One of the innovations in selling oil and gas blocks that the Government has been and is currently doing is the Gross Split cooperation scheme replacing the Production Sharing Contract (PSC) scheme.

"In the ASEAN Ministerial Energy Meeting two weeks ago in Singapore, several ASEAN countries expressed their great interest in our new fiscal regime, the Gross Split. They want to learn about this Gross Split, because they think this thinking is very progressive. It is one of them," he explained.

Arcandra added compared to other countries, Indonesia is one step ahead, the results can be seen right now. "We have a definite Work Commitment, our blocks are already selling 11. And this is actual, a fact," he concluded.