PALEMBANG: Government of Indonesia will provide incentives for tax exemption for a certain period for the exploration of Coal Bed Methane (CBM) gas in order to encourage the availability of alternative energy.
Coordinating Minister Hatta Rajasa said Indonesia is rich in reserves of CBM in the country. For example, in Sumatera there was potential for CBM to reach 100 trillion standard cubic feet (TCS) which is not exploitative.
"To that end, must be given incentives for IRR (Internal Rate of Return) should be interesting. Because at the time of exploration and production of water, they do not get anything. So, do not cost you anything. It's up to what it's called, whether tax holidays, tax allowance," he said on the sidelines of inauguration ceremony in the village of Electrical Entrance Sido Rahayu Village, District High placard, Banyuasin, South Sumatera.
According to him, tax treatment of CBM mining companies can not be equated with the treatment of the general rule mining or oil and gas businesses. Exploitation of CBM has special characteristics because of its position that exists between water and coal.
"Therefore, to take the CBM we should pull out all the water first. This is what makes CBM is different compared to other energy exploitation. On that basis, there should be special incentives for CBM. For anyone who is investing in CBM must defray the costs of very early CBM big before getting it, "he said.
Coordinating Minister explained the development of CBM in Indonesia is based on rules issued by the Minister of Energy and Mineral Resources as a breakthrough for the decline of oil production in Indonesia.
The breakthrough is at once a follow-on survey results conducted by the American consultants who demonstrate the possibility of a potential CBM resource of 337 TCS expectancy in Indonesia.
"CBM will be accelerated. In the year 2013 in Borneo have entered the program CBM to LNG, CBM is converted into liquefied natural gas," said Hatta.
Based on World Bank data, Indonesia's CBM reserves are quite large, reaching 450 TCS and spread in 11 basin. Concentrations of the greatest potential lies in Kalimantan and Sumatra.
In East Kalimantan a.l. spread in Berau with content about 8.4 TCS, Pasir / Asem (3 TCS), Tarakan (17.5 TCS), Kutai (80.4 TCS), and Barito Barito regency (101.6 TCS).
As for Sumatra, CBM potential spread in Central Sumatra (52.5 TCS), South Sumatra (183 TCS), and Bengkulu 3.6 TCS. The rest, located in Jatibarang-West Java (0.8 TCS) and Sulawesi (2 TCS ).(*)
Coordinating Minister Hatta Rajasa said Indonesia is rich in reserves of CBM in the country. For example, in Sumatera there was potential for CBM to reach 100 trillion standard cubic feet (TCS) which is not exploitative.
"To that end, must be given incentives for IRR (Internal Rate of Return) should be interesting. Because at the time of exploration and production of water, they do not get anything. So, do not cost you anything. It's up to what it's called, whether tax holidays, tax allowance," he said on the sidelines of inauguration ceremony in the village of Electrical Entrance Sido Rahayu Village, District High placard, Banyuasin, South Sumatera.
According to him, tax treatment of CBM mining companies can not be equated with the treatment of the general rule mining or oil and gas businesses. Exploitation of CBM has special characteristics because of its position that exists between water and coal.
"Therefore, to take the CBM we should pull out all the water first. This is what makes CBM is different compared to other energy exploitation. On that basis, there should be special incentives for CBM. For anyone who is investing in CBM must defray the costs of very early CBM big before getting it, "he said.
Coordinating Minister explained the development of CBM in Indonesia is based on rules issued by the Minister of Energy and Mineral Resources as a breakthrough for the decline of oil production in Indonesia.
The breakthrough is at once a follow-on survey results conducted by the American consultants who demonstrate the possibility of a potential CBM resource of 337 TCS expectancy in Indonesia.
"CBM will be accelerated. In the year 2013 in Borneo have entered the program CBM to LNG, CBM is converted into liquefied natural gas," said Hatta.
Based on World Bank data, Indonesia's CBM reserves are quite large, reaching 450 TCS and spread in 11 basin. Concentrations of the greatest potential lies in Kalimantan and Sumatra.
In East Kalimantan a.l. spread in Berau with content about 8.4 TCS, Pasir / Asem (3 TCS), Tarakan (17.5 TCS), Kutai (80.4 TCS), and Barito Barito regency (101.6 TCS).
As for Sumatra, CBM potential spread in Central Sumatra (52.5 TCS), South Sumatra (183 TCS), and Bengkulu 3.6 TCS. The rest, located in Jatibarang-West Java (0.8 TCS) and Sulawesi (2 TCS ).(*)
No comments:
Post a Comment