Why Do Oil and Gas Supporting Industries Ask for Incentives?

By Editorial Team 29/05/2020
Summary

The Oil and Gas Companies Association (Aspermigas) has asked the government to provide a fiscal stimulus for the oil and gas supporting industry. The reason is that the decline in world oil prices and the Covid-19 pandemic also have an impact on the business continuity of oil and gas supporting companies. Aspermigas Executive Director Moshe Rizal Husin said fiscal stimulus should not only be given to oil and gas cooperation contract contractors (KKKS) but also the oil and gas supporting industry.

"The government also needs to pay attention to oil and gas supporters, most of which are domestic companies," Moshe told Katadata.co.id on Thursday (5/28). The stimulus given to the oil and gas supporting industry can be in the form of tax incentives or lending with mild interest through state-owned banks. Currently, many upstream oil and gas projects are delayed or canceled so that the oil and gas supporting companies that are KKKS partners lose their jobs. As a result, their income dropped.

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