Indonesia tells oil majors to follow currency rules or stop exports

JAKARTA Fri Feb 22, 2013 5:09am EST

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JAKARTA Feb 22 (Reuters) - Oil and gas contractors in Indonesia will have to stop exports if they do not follow central bank rules to channel export revenues through local banks, a senior official at oil and gas regulator SKKMigas said on Friday.

"If (oil and gas contractors) keep refusing, they will not be allowed to export," Finance Director Akhmad Syakhroza told Reuters. He said the firms had until June 30 to comply.

He said all proceeds from the sale of Indonesian natural resources must go through a local bank.

Two of the biggest production sharing contractors in Indonesia, Chevron and Total, have both said their contracts allow them to place exports earnings as they choose. Chevron has warned that the regulation could deter foreign investment.

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