Indonesia Awards 15 PSCs; Tax Regime To Be Improved.
President Susilo Bambang Yudhoyono told oil executives in a dinner speech Indonesia needed foreign oil investors to operate in the country. He added: "In the upstream oil and gas sector, BPMigas...will closely monitor investment levels to ensure that terms are internationally competitive". (BPMigas is Indonesia's watchdog observing the E&P operations). "The government will strengthen regulation and improve legal certainty to create a more conducive businesses climate for the private sector", Yudhoyono said, adding: "I know a lot of you have tax issues in your mind. On this issue I have acted to review and study the existing tax and custom policy to find a more sound (one) that I hope will boost more investment in the years to come".
Indonesian Vice President Jusuf Kalla on Dec. 13 said the government planned to modify the country's taxation system to attract more foreign investment in the gas and oil sectors. "We need to review and improve our taxation system", he told reporters on the sidelines of an international energy conference in Jakarta. Jusuf said the government was considering scrapping import duties for equipment used in developing gas and oil blocks jointly operated by the government and foreign partners. This is because under an existing cost-recovery scheme for foreign investors, the equipment will eventually be owned by the government. Jusuf said the government was to free companies exploring in Indonesia from the value-added tax. He did not provide a timeframe for the implementation of these measures. Increasing foreign investment in the petroleum sector is crucial to Indonesia's efforts to boost its dwindling oil output.
Indonesia became a net crude oil importer for the first time in March as unclear regulations governing the domestic industry discouraged investment, particularly from foreign players.
|Printer friendly Cite/link Email Feedback|
|Comment:||Indonesia Awards 15 PSCs; Tax Regime To Be Improved.|
|Publication:||APS Review Oil Market Trends|
|Date:||Dec 20, 2004|
|Previous Article:||Iraq - Turkish & Canadian Firms Recommended For Field Development Contracts.|
|Next Article:||Russia - Yukos' YNG Goes To BaikalFinansGroup For $9.34.|