Indonesian body questions gross-split sliding scale

The contractors for the exploration industry are apparently not interested in the new scheme, as there is uncertainty over whether it could actually benefit them, Sammy Hamzah, Apindo chairman for energy and mineral resources, said.
 “The gross-split indeed solves problems in the industry, but only for production contracts industries. However, it can be difficult to apply it to exploration contracts, as the split that the new scheme offers is not as interesting as a net split,” Sammy said during a discussion at the Press Council secretariat in Jakarta.
There were two things that contractors for exploration contracts wanted, namely legal certainty and options, he added.
“The government should give [contractors] an option. Why does the government not provide the option for them to choose either the gross-split or other schemes? |Why is the [gross-split] being forced?” he said.
Investment in the exploration industry was reportedly stagnant for five years after regulation No 22/2001 was approved, Sammy said, adding that it even declined after the five years of stagnancy.
He blamed the problem on the inconsistencies of follow-up regulations that came about after the |regulation in 2001.
The government has recently introduced the gross-split scheme, which will release it from the duty to reimburse exploitation costs to contractors during the length of their contracts, forcing companies to carry the burden of these |costs themselves. |– The Jakarta Post

Vietnamese PM heaps praise on Samsung
Prime Minister Nguyen Xuan Phuc said yesterday that he appreciates the Samsung Group setting up a mobile research and development centre to transfer cutting-edge technology to Vietnam.
He also said he hopes the South Korean group would keep its commitment to invest more in the country’s high-tech sector.
Visiting the Samsung complex in the Yen Phong Industrial Park in Bac Ninh Province yesterday morning, the PM expressed his wish that Samsung would allow more |domestic companies to join its production chain. 
The local input for Samsung currently stands at |about 50 per cent.
Vietnam in general and Bac Ninh province in particular will create a favourable environment for Samsung to expand itsbusiness in the country, including ensuring political stability |and sufficient labour resources, he said. 
Samsung currently has six factories in Vietnam with an |estimated investment of US$15 billion (Bt526 billion). – Viet Nam News