CD expenses to be reimbursed via cost recovery
Friday, September 23 2016 - 12:36 AM WIB
Upstream authority SKK Migas, the Ministry of Energy and Mineral Resources, and the Finance Ministry have reached agreement on a number of issues in relation to the revision of Government Regulation No 79/2010 on cost recovery and tax treatment in the upstream oil and gas sector.
This was said by Parulian Sihotang, a deputy at SKK Migas, to Petromindo.com on Thursday. He said that under the revised regulation, for instance, expenses made by oil and gas firms for community development (CD) and environment will be reimbursed by the government via the cost recovery mechanism.
He added that under the revised regulation, tax on facility sharing has been exempted. He also said that tax on transfer of participating interest has now been classified as final.
Vice Minister of Finance Mardiasmo said earlier that the government hoped to conclude and sign this week the revision of Government Regulation No 79/2010 in a bid to attract fresh investment in the sector.
He reiterated that the revision of the regulation is aimed at improving the fiscal and non-fiscal facilities in the country?s upstream oil and gas sector in a bid to help lure fresh investment amid the current weak oil price environment.
Editing by Reiner Simanjuntak