SESSION 3

Indonesia's oil situation is still low. In thirty years we will depend on other countries
for oil and gas. Countries that still produce oil and gas are located in Southeast, middle east,
and Africa. The average in Asia Pacific oil will be exhausted within forty years, while
Indonesia itself will be exhausted within fifty years. The problem is the absence of a balance
of production and consumption. We are not a country rich in oil and gas compared to other
countries.

Now our gas production is higher than oil production. It used to be more oil than gas.
If we do nothing then oil and gas production will decline year by year. Currently we are
dependent on the field of production, less exploration. Then we must find the potentials to be
produced. The problem is more directed to non-technical, not technical. Non-technical
problems are more difficult to deal with because they deal with regulations and social
responses. For example, offshore exploration with onshore. It is easier offshore exploration in
terms of permissions. If the exploration is onshore then more demonstration. Changing
regulations and demos make investors hesitant in investing in Indonesia. Oil and gas itself is
easily an issue in politics that influences social thinking on oil and gas exploration. Then, the
problem in exploration is taxes. This affects the costs incurred for exploration. If the
exploration is reduced then the employment is reduced. But we do not have to be worry
because we have potential in oil and gas. There are many potential that undiscovered and
reduce the demo that makes investors afraid to invest in Indonesia.