Government to speed up fiscal facility process for upstream activities

The Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources signed on Thursday a MoU on integrated information system in the provision of fiscal facilities on the import of operating equipment for upstream oil and gas activities.

The directorate said in a statement that the MoU was signed with the Directorate General of Excise and Customs, upstream oil and gas authority SKK Migas, and the Indonesia National Single Window (INSW) Portal Operator.

Director General of Oil and Gas Ego Syahrial said in the statement that the integrated information system will help significantly speed up the process in the provision of the fiscal facility for oil and gas contractors in the import of equipment as the online application system at each related institutions will be integrated.

Under the current system, oil and gas contractors have to make multiple applications to get the fiscal facility, requiring transaction of up to six times that will require about 42 days to complete. With the integrated information system, only two transactions are required and it will only take 24 days to complete, thus significantly improving efficiency, which in turn would help improve investment climate in the upstream sector.

Trial of the integrated system is scheduled for the first quarter of 2018, and full implementation will be made in the first semester, the statement said.

This integrated information system is the first step toward integration of systems in other government institutions including the Directorate General of Taxation, Directorate General of State Assets, and the Directorate General of State Budget so that in the future the integrated system can provide better data for more accurate calculation of cost recovery, valuation of state asset, and oil and gas income tax as well as non-tax state revenue from the oil and gas sector.

Editing by Reiner Simanjuntak