Pertamina expects VAT exemption in purchase of domestic crude

By Febry Silaban

State owned oil and gas firm PT Pertamina (Persero) expects the Finance Ministry to grant its request for exemption of value-added tax (VAT) in the planned purchase of crude oil from PSC holders in the country.

"We hope that the three percent tax (VAT) will not be imposed. We are currently negotiating with them (Ministry of Finance)," President Director of Pertamina Dwi Sutjipto said.

Previously, Director General of Oil and Gas at Ministry of Energy and Mineral Resources, I Gusti Nyoman Wiratmaja said that starting in 2016 the government will restrict crude export based on quota of the contractors set in their production sharing contracts.

Editing by Reiner Simanjuntak