Indonesia urged to simplify equipment imports

June 16, 2006
The Indonesian Petroleum Procurement Association (APPI) has urged the government to simplify procedures for importing equipment needed for exploration and production.

Eric Watkins
Senior Correspondent

LOS ANGELES, June 16 -- The Indonesian Petroleum Procurement Association (APPI) has urged the government to simplify procedures for importing equipment needed for exploration and production.

APPA Sec.-Gen. M.H. Thamrin said the government needed to act quickly by issuing a joint ministerial decree since several different ministries are involved.

Imported oil and gas equipment currently has to be verified by oil and gas upstream regulatory agency BP Migas, customs and excise, and the trade ministry. A single regulation and inspecting agency would reduce delays and lower importers' costs, he said.

Indonesian Oil & Gas Drilling Contractors Association Chairman Bambang Purwohadi agreed with Thamrin and urged quick action by the government.

Under current regulations, Purwohadi said, a company might have to wait a month or more before taking delivery of imported equipment.

Contact Eric Watkins at [email protected].