Revision of Regulation of the Government 48/2019 Set for Ratification Soon: Here Are the Changes

The government will soon ratify the revision of Regulation of the Government No. 48 of 2019 on the Levy Amount and Utilization of Levies in Relation to Business Entities Engaged in the Provision and Distribution Business Activities of Fuel Oil and the Transportation of Natural Gas through Pipelines. (“PP 48/2019”).

The head of the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi - "BPH Migas"), Erika Retnowati, explained that the revised draft has been submitted to the Minister of State Secretariat and is currently awaiting President Prabowo's signature for ratification. Erika assessed that this revision is an opportunity for BPH Migas to utilize Non-Tax State Revenue (Penerimaan Negara Bukan Pajak - “PNBP”) for oil and gas infrastructure development.

"So, the revision of this PP is already with the State Secretariat (Setneg) and just needs to be signed by the President," said Erika at the DPR.

In addition to the use of PNBP, the amendment to PP 48/2019 also eliminates the collection between the Kilang Pertamina Internasional (KPI) and Pertamina Patra Niaga (PPN) in order to prevent double levies within Pertamina's subholdings.