Indonesia has been exploring and producing oil and gas for 100 years. Now you have to push further out and that means more expense and deeper water.

Even though oil futures are flat this morning and have remained around (the) $63 to $64 a barrel level, concerns remain over the prospect of the combination of higher inflation and borrowing costs.

The only thing that can stop further declines in the market today is a tame ISM figure and lower oil prices,

Multinationals in today's environment have gotten bigger, and hence their hurdle rate for a site to be economic has risen. Indonesia doesn't offer that as much as it used to.

It will provide further confidence in the structure and environment in which producers can operate in Indonesia.

We question whether companies will be able to pass their input increases on. Even if the oil price goes sideways, it will still hurt companies.