![]() ![]() This new policy invited pros and cons particularly since the release of Notice of LBT Payable from Directorate General of Tax for 16 Production Sharing Contractors with a huge amount of IDR 2,6 trillion. LBT expense is also treated as operating cost that will recover after the work area has reached commercial production. Under cost recovery, all contractors are requested to meet obligation on property tax in the first pace, meanwhile assume and discharge stipulate that government will bear LBT expense. In 2010, Indonesia implemented regulation consisting of a new concept on cost recovery replacing assume and discharge. Haula Rosdiana a *, Inayati b, Machfud Sidik cĪHead of Research Cluster "Politic of Taxation, Welfare and National Security, Universitas Indonesia, MBuilding 2nd Floor, Depok 16424 bTax Administrative Science, Universitas Indonesia, MBuilding 2nd Floor, Kampus FISIP Universitas Indonesia, Depok 16424 c Indonesian Fiscal and Tax Administration Association (IFTAA), B Building 2nd Floor, Kampus FISIP Universitas Indonesia, Depok 16424 Indonesia property tax policy on oil and gas upstream business activities to promote national energy security: quo vadis The 5th Sustainable Future for Human Security (SustaiN 2014) ![]() Procedia Environmental Sciences 28 (2015) 341 - 351 Besides, it is necessary to protect oil and gas investors and to mend the investment climate as well. We analysed the impact of new policy concerning the upstream oil and gas business tax property on the Indonesia program of national energy security.Based on comprehensive analysis, we recommend government to amend related policy and law in order to connect with current development as well as to protect Indonesia economy and state budget. In addition, there was a propensity of investors to resign from the existing exploration projects due to the high burden of fiscal expenses. ![]() This tender was only followed by 37,5% applicants,compared to the preceding ones that participations reached 90%. It can be seen from the decrease of candidate of investors’ participation in the tender of exploration work area in the first pace of 2013. This amount was higher than three years firm commitment and the base of LBT imposed was offshore work area in a whole as stated in a signed contract document.The imposition of LBT in the upstream oil and gas business activity has become a determinant variable for investors either existing or candidate in business forecasting and decision making on oil and gas investment. LBT expense is also treated as operating cost that willrecover after the work area has reached commercial production. Abstract of research paper on Economics and business, author of scientific article - Haula Rosdiana, Inayati, Machfud Sidik ![]()
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