China FTA not to Affect Oil and Gas Sector

VIVAnews - The free trade agreement (FTA) between China and ASEAN which will be applied this year will not hamper upstream oil and gas industry.

An analyst from research institute Reforminer Institute, Pri Agung Rakhmanto, said the oil and gas industry has basically implemented free trade prior to the application of the FTA.

"For instance, oil and gas industry has set zero percent import duty and import tax over exploration and production items," he told VIVAnews on Monday, Jan 4.

According to him, despite the China FTA, it is possible that other countries will be expanding in the future. Therefore, he suggested the government minimize the foreign expansion by strictly applying minimum use of local materials in oil and gas industry.

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Translated by: Bonardo Maulana Wahono