Ministry proposes land building tax exemption for exploration firms

By Godang Sitompul

The Directorate General of Oil and Gas has sent a letter to the Directorate General of Taxation, officially asking for the land and building tax (PBB) exemption for production sharing contractors (PSC) still in exploration stage.

The proposal was made on the grounds PBB is considered to burdensome during for PSC still exploration stage, Director General of Oil and Gas A. Edy Hermantoro said on Thursday on the sidelines of the 31st AMEM (Asean Ministry on Energy Meeting) in Nusa Dua, Bali.

He said as a follow-up to the proposal, Vice Minister of Finance Anny Ratnawati held a discussion with the Indonesian Petroleum Association (IPA) on Wednesday.

?We have sent a letter, form the Directorate General of Oil and Gas to the Directorate General of Taxation. The PSCs also ask for the exemption. They are studying the proposal. We can?t intervene,? Edy said.

Editing by Johannes Simbolon