MoF issues new regulation on DMO fee in upstream oil, gas activities
Thursday, November 7 2013 - 01:26 AM WIB
The Ministry of Finance (MoF) has issued a new Regulation No 139/PMK.02/2013 on the payment procedure of domestic market obligation (DMO) fee, over lifting contractors, and/or under lifting contractors in upstream oil and gas activities.
According to the copy of the regulation, obtained on Thursday, the upstream oil and gas authority SKK Migas formulates provisions on the method to calculate the value of the DMO fee of contractors within a certain period and on the procedure of making the payment request. The SKK Migas also formulates provisions on the method to calculate the value of over lifting contractors, and under lifting contractors, as well as on the procedures of billing the over lifting contractors and request of payment of under lifting contractors.
The new regulation also details a set of requirements that must be fulfilled by the SKK Migas in making payment request of the DMO fee of contractors and under lifting contractors to the Ministry of Finance via the ministry?s Directorate General of Budget, as well as the latter?s responsibilities before approving the request and making the payment within a set of time frame, and other aspects.
Editing by Reiner Simanjuntak