Govt to calculate production share every quarter
Thursday, February 18 2010 - 02:37 AM WIB
"The calculation will be carried out by the Ministry of Energy and Mineral Resources along with (oil and gas upstream sector regulator) BPMIGAS, Ministry of Finance and oil and gas producing regions. Besides, there will a coordination with the Consultation Forum of Producing Regions," Zahedy said in the ministry's website.
The Ministry of Finance will distribute to producing regions the government's oil and gas production share revenue every three months after tax and other levies have been subtracted, he explained.
Under the Fiscal Balance between Central Government and Regions Law No. 25/1999, the central government is entitled to 84.5 percent of oil production share revenue after tax and other levies, with producing regions taking 15 percent.
The oil production share revenue allocated for producing regions will be divided among the provincial administrations and regency/mayoralty administrations of in the province with the breakdown as follows: 3 percent for the provincial administration, 6 percent for regency/mayoralty that produce the oil, 6 percent for all other regencies/mayoralties in the province, 0.5 percent to add to basic education development fund.
As far as gas revenue is concerned, under the law, the central government is entitled to 69.5 percent of the gas production share revenue after tax and other levies with producing regions taking 30.5 percent.
The gas production share revenue allocated for producing regions will be divided among the provincial administration and regency/mayoralty administrations of the province with the breakdown as follows: 6 percent for the province, 12 percent for regency/mayoralty that produce the gas and 12 percent for other regencies/mayoralties in the province, and 0.5 percent to add to basic education development funds. (*)