JAKARTA, March 4 Indonesia's oil and gas
contractors have all agreed to comply with a controversial rule
that forces them to put their exports proceeds through a local
bank rather than directly offshore, the central bank said on
The agreement follows protests by at least two energy
contractors and a warning from the government that their
shipments could be blocked if they refused to abide by the rule,
being implemented this year.
"All the oil and gas contractors agreed to comply with BI
regulations on export proceeds and use local banking services,"
central bank spokesman Difi Johansyah said in a text message to
Southeast Asia's largest economy is pushing for massive
expansion of its energy sector to meet rapidly expanding
Indonesia's top oil producer Chevron Corp has warned
that investment will decline if confusing and sometimes
overlapping regulations are not resolved, including the central
Another leading contractor, Total SA, has said it
would be impossible to comply.
Neither company was immediately available to comment on the
central bank statement.
The issue has been seen as adding to the complexity of
investing in Indonesia and which a number of companies have
warned could start to deter foreign investors. For the moment,
however, they are pouring record amounts into the world's fourth
most populous nation and one of its fastest growing economies.
Major foreign energy firms argue that their production
sharing contracts with the government allow them to decide how
the earnings are channelled. Some are paid offshore directly.
Under production sharing agreements, oil companies bear all
costs until production begins, at which point all their costs
are reimbursed by the Indonesian government.
Then the production is divided up 85 percent to the
government and 15 percent to the oil firms. For gas, the split
is usually 70-30, depending on the specific contract.
The central bank spokesman said that in 2012, the share of
reported export proceeds in local foreign exchange banks was
$128.5 billion, or 82.8 percent of total exports.
The central bank is using the rule as part of measures to
monitor the amount of foreign currency in the country. While it
appears willing to let the rupiah continue to weaken, it has
made clear that it will try to prevent any rapid movements in