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Director General of Oil & Gas

Distinguished Guests,
Ladies and Gentlemen,

Assalamualaikum Warahmatullahi Wabarakatuh,

We have now come to the close of the INDOGAS 2011 Conference and Exhibition. I would like to thank the Speakers for their invaluable contribution and to you the Delegates for your active participation in this 3 day conference. I would also like to thank the Organizing Committee and the Steering Committee for making this conference a successful event.

I am confident that the presentations and discussions over the past three days have met the goals of the Conference. Most critically, I believe a common ground of understanding has been established among the government, and the various stakeholders in the Indonesia gas chain, on the possible solutions to the barriers facing the Indonesia gas industry.

The theme of the conference "Clean Energy for Sustainable Development" was selected to reflect the industry's eagerness to help develop, monetize and maximize the use of Indonesia's gas as clean source of energy for the development of Indonesia and its surrounding regions. Thus it is with great encouragement that we hear the strong commitment and willingness from all stakeholders to achieve the above objective.

I believe the Indogas 2011 Conference has provided all stakeholders opportunity to exchange views and valuable experiences through the presentations and discussions over the last three days. I also believe that the remark from His Excellency, the Minister of Mineral and Energy Resources during the Conference Opening Ceremony has provided you all with a degree of confidence that the results of the discussions during this conference will be followed up.

The Business Forum as part of this conference has been indeed a very successful forum which has provided opportunity for Indonesia gas stakeholders to have a very open exchange of views and information. Constructive discussion and feedback have taken place among the Gas & LNG stakeholders and policy makers within the Government of Indonesia on the issues and challenges faced by the industry in maximizing Indonesia's gas production and utilization as a clean source of energy.

Three main issues that were raised during this Business Forum were:
1. Economic principles in the commercialization of Indonesia gas to supply markets both domestic and export.
2. Efforts for the acceleration of Indonesia's gas development with the main requirement being the development of infrastructures.
3. Development of unconventional gas resources such as CBM and Shale Gas to help achieving our target of sustainable supply.

We all agree that in order to overcome any challenges which we are now facing on all the above issues require coordination and alignment among the stakeholders which include government or policy makers and the whole players in the Indonesia gas industry.

In alleviating the above challenges, the industries through the Business Forum has requested the Government
- to establish gas pricing policy which emphasize the principles of maximizing the values of gas projects to all stakeholders,
- to expedite the development of FSRU, transmission and distribution pipelines in fulfilling domestic demand, and
- to create positive vibrations by issuing policies and regulations that will encourage conventional gas and non conventional gas development activities including CBM in Indonesia.

I would like to assure you that the Government will continue to listen to the industries' concerns and will continue to work with the industries in overcoming the challenges in Indonesia gas development together. As you have witnessed during the opening of this conference, I have reported to the Minister of Energy and Mineral Resources, your concerns, requests and suggestions with the intention that these will be followed up through further coordination with the related Ministries.

With regard to your specific request for establishing a Joint Task Force involving all the relevant stakeholders to overcome challenges to the Indonesia gas development, we will evaluate the right mixture of this Joint Task Force as well as the interface with other existing agencies, task forces, government teams and industry associations.

Distinguished Guests,
Ladies and Gentlemen,

The Organizing and the Steering Committees of the INDOGAS 2011 has done an excellent job in organizing this event in cooperation with the Indonesian Gas Association. The delegates' active participation has also made this conference and exhibition a successful event. I have enjoyed being in this conference and therefore, I would like to express my appreciation to all of you.

Now, the results of the conference that have been summarized by the Committees have added the significance of this conference and all participants in contributing their insights and recommendations to meet our common objective of accelerating the Indonesia gas projects developments and maximizing Indonesia's gas production and utilization as a clean source of energy.

I am pleased to accept this report detailing the discussions and recommendations extracted from the Conference. I will study this report and will certainly follow up your recommendations in coordination with the Ministry's office.

During the conference, Shell Upstream Indonesia Services BV has formally handed over oil and gas data to the Government of Indonesia through the Directorate of Oil and Gas. This is geological and geophysical information related to exploration and exploitation activities by Shell and its affiliates in Indonesia up to the year of 1965. This is important information to add to our existing oil and gas information.

Distinguished Guests,
Ladies and Gentlemen,

I will now officially close the INDOGAS 2011 Conference and Exhibition. I look forward to sharing the outcome of improved shareholders alignment and the delivery of new gas projects, both conventional and non-conventional such as coal bed methane at the 6th INDOGAS 2013.