Government Continues the Revision of PP 27/2017 and PP 53/2017

The Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”) continues the revision of Regulation of the Government No. 79 of 2010 on Refundable Operating Costs and Income Tax Treatment in the Upstream Oil and Gas (“Oil-and-Gas”) Business Sector, as amended by Regulation of the Government No. 27 of 2017 (collectively referred to as “PP 79/2010”), and Regulation of the Government No. 53 of 2017 on Tax Treatment in Upstream Oil and Gas Business Activities with Gross Split Production Sharing Contracts (“PP 53/2017”).

The Head of the Oil-and-Gas Production/Lifting Acceleration Task Force, Nanang Abdul Manaf explained the changes to the two regulations of the government related to the discourse on indirect tax exemptions to support domestic Oil-and-Gas production.

"The Plan for Indirect Tax Exemption for the Exploitation Stage through PP 79/2010 and PP 53/2017 which are currently being revised," said Nanang.

The Director of Upstream Oil-and-Gas Business Development, Ariana Soemanto ensured that the process of changing the two regulations is currently being discussed together between the Ministry of ESDM and the Ministry of Finance under the coordination of the Coordinating Ministry for Economic Affairs (Kemenko Perekonomian).

"It is being discussed together with Kemenko Perekonomian," said Ariana.