Ministry to form exploration unit
Thursday, October 22 2015 - 02:18 PM WIB
The new unit will be formed in response the recommendation from the National Exploration Committee (KEN) formed by the ministry in June of this year, the Directorate General of Oil and Gas said in a statement on Thursday.
Sudirman is optimistic that the unit will operate collaboratively and professionally, according to the statement. The statement however did not provide any details regarding the exploration unit, its job description and whether it will be part of the ministry or KEN.
With regards KEN?s recommendation for the revocation of Governmental Regulation (PP) No. 79/2010 on recoverable operating costs and income tax in upstream sector, which the agency says is a scourge for investors and counterproductive to exploration activities, Sudirman said he will talk with related ministries over the issue, including the Ministry of Finance.
He said he supported the recommendation. ?If we have to revoke it, let?s do it. We are now in the mood for large-scale reforms. We shall put it in the list of regulations that need to be reviewed,? Sudirman said.
Sudirman said that if the regulation is revoked, the state revenue from tax will decrease on the short term. It will however generate more revenue to the government on the long term. ?The government is willing to make sacrifice on the short term in an expectation to reap more taxes on the long term.?
Editing by Johannes Simbolon