Revision of Regulation No 79 to be completed this week
Wednesday, September 21 2016 - 02:36 AM WIB
The government hopes to conclude and sign this week the revision of Government Regulation No 79/2010 on oil and gas cost recovery and income tax treatment in the upstream sector in a bid to attract fresh investment in the sector.
This was said by Vice Minister of Finance Mardiasmo to Petromindo.com on Tuesday. ?Hopefully this week. (Interim) minister of energy and mineral resources, and minister of finance will hold a joint press conference,? he said.
He reiterated that the revision of the regulation is aimed at improving the fiscal and non-fiscal facilities in the country?s upstream oil and gas sector in a bid to help lure fresh investment amid the current weak oil price environment.
He said that the facilities will be provided for industry players planning to carry out exploration programs. ?It (the facilities) will be primarily be given for players planning exploration activities,? he said.
He pointed out as an example that the so-called land and building tax (PBB) will not be applied on the entire concession, but limited to areas where exploration activities are being carried out.
Mardiasmo said that the revision of the regulation is also aimed at increasing internal rate of return in the upstream sector to more than 15 percent to attack investment.
Editing by Reiner Simanjuntak