The Geology of Indonesia/Petroleum Issues

Fiscal Regime

Fiscal regime for the petroleum exploration in Indonesia is considered un-competitive compared to other countries. It reflected on the minimal interest from the major oil companies to invest their money for the petroleum exploration activities in Indonesia.

Technical Brain Drain

The problem on the petroleum industry in Indonesia is the technical brain drain. Large proportion of the highly skilled technical people with good experience in the oil industry are left to working overseas to gain international experience and higher salary. It is not a secret that oil industry in Indonesia is unfairly renumerate their workers. The renumeration for expatriate personnel is about 5-10 times higher than the local employee with similar technical skills and level of experiences.