Government to issue tax rules on Gross Split

The government plans to issue a regulation detailing the taxes imposed for production sharing contract (PSC) of gross split schemes. This regulation is targeted to be published later this month.

Deputy Minister of Energy and Mineral Resources (ESDM) said the issuance of special tax regulation for PSC gross split is based on the proposed Indonesian Petroleum Association (IPA). The association of oil and gas companies in Indonesia stated that there is a need for a regulation similar to Government Regulation No. 79/2010, but specifically for gross split contracts, not cost recovery.

 "So for that, the draft rules already exist. We hope this month can come out, "he said in Jakarta, Wednesday (5/7).

Unfortunately, Arcandra reluctant to detail the contents of the new rules. He just mentioned, this new rule will not be much different from the newly revised PP 79/2010. Similar to regulation cost recovery, the regulation for gross split will also contain special tax treatment for the oil and gas sector. However, this new regulation also will not contain provisions Assume and Discharge.

However, adding that not all points in PP 79/2010 will be incorporated into the new rules for the gross split contract. "The only thing is cost recovery, another gross split. There are items that are only applicable for cost recovery, there is items that are applicable for gross split, "he explained.

Since ESDM Minister Regulation No. 8 of 2017 which regulates the implementation of gross split contracts at the beginning of the year, IPA has voiced the need for tax laws that support this regulation. 

    The reason, Executive Director of IPA Marjolijn Wajong had said, the view of the Ministry of Energy and Mineral Resources and the Ministry of Finance is not the same about the tax regulations to be followed. Though taxation is an important factor that must be calculated by investors when it will spend the funds.

Investors can not be convinced just by words. The government must make efforts so that investors will be comfortable investing in upstream oil and gas sector with gross split contract.

"So many who need synergy and synchronization. This means that if the rules out, make sure the ministry Iain sound the same, "he said.

Since the issuance of Regulation of the Minister of Energy and Mineral Resources 8/20 2016, there is only one oil and gas block whose contract is signed using the gross split scheme, Offshore North West Java (ONWJ) Block managed by PT Pertamina Hulu Energi. The share of government revenue compared to the block contractors is 32.5: 62.5 for gas and 42.5: 57,5 ​​for oil.

IN INDONESIA

Pemerintah Bakal Terbitkan Aturan Pajak Gross Split

Pemerintah berencana menerbitkan peraturan yang merinci pajak-pajak yang diberlakukan untuk kontrak kerja sama (production sharing contract/ PSC) skema bagi hasil kotor (gross split). Peraturan ini ditargetkan bisa diterbitkan akhir bulan ini.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) mengatakan, diterbitkannya peraturan perpajakan khusus untuk PSC gross split ini berdasarkan usulan Indonesian Petroleum Association (IPA). Asosiasi perusahaan-perusahaan migas di Indonesia itu menyatakan perlunya adanya peraturan sejenis Peraturan Pemerintah No 79 Tahun 2010, namun khusus untuk kontrak gross split, bukan cost recovery.

 “Maka untuk itu, draft peraturannya sudah ada. Kami harapkan semoga bulan ini bisa keluar,” kata dia di Jakarta, Rabu (5/7).

Sayangnya, Arcandra enggan merinci isi dari peraturan baru tersebut. Dia hanya menyebut, peraturan baru ini tidak akan jauh berbeda dengan PP 79/2010 yang baru saja direvisi. Sama dengan aturan cost recovery, peraturan untuk gross split ini juga akan memuat perlakuan perpajakan khusus untuk sektor minyak dan gas. Hanya saja, peraturan baru ini juga tetap tidak akan memuat ketentuan Assume and Discharge. 

Meski demikian, ditambahkannya tidak semua poin yang ada di PP 79/2010 akan dimasukkan ke dalam peraturan baru untuk kontrak gross split tersebut. “Satunya adalah cost recovery, satu lagi gross split. Ada item yang hanya applicable untuk cost recovery, ada item yang applicable untuk gross split,” jelasnya. 

Sejak Peraturan Menteri ESDM No 8 Tahun 2017 yang mengatur soal penerapan kontrak gross split terbit pada awal tahun, IPA telah menyuarakan perlunya akan peraturan perpajakan yang menyokong peraturan ini. 

    Pasalnya, Direktur Eksekutif IPA Marjolijn Wajong sempat menuturkan, pandangan Kementerian ESDM dan Kementerian Keuangan tidak sama soal peraturan perpajakan yang harus diikuti. Padahal perpajakan merupakan faktor penting yang harus dihitung oleh investor ketika akan mengeluarkan dana.

Investor tidak bisa diyakinkan hanya dengan kata-kata. Pemerintah harus melakukan upaya-upaya agar akhirnya investor nyaman berinvestasi di sektor hulu migas dengan kontrak gross split.

“Jadi banyak yang butuh sinergi dan sinkronisasi. Artinya kalau keluar aturan, pastikan kementerian Iain bersuara sama,” kata dia.

Sejak diterbitkannya Peraturan Menteri ESDM 8/ 2016, hanya ada satu blok migas yang kontraknya diteken menggunakan skema gross split, yakni Blok Offshore North West Java (ONWJ) yang dikelola PT Pertamina Hulu Energi. Pembagian bagi hasil pemerintah dibanding kontraktor blok ini ditetapkan 32,5:62,5 untuk gas dan 42,5:57,5 untuk minyak. 

Investor Daily, Page-9, Thursday, July 6, 2017

Pertamina & Total Sit together to discuss the distribution of Shares

PT Pertamina will drill up to 15 wells in the Mahakam Block to boost production

PT Pertamina confirmed that next week it will discuss the Mahakam Block shareholding with PT Total EP Indonesie plan. Upstream Director of Pertamina, Syamsu Alam said that the discussion next week was more technical. "If you want to enter what kind, what kind of mechanism," said Syamsu, Wednesday (5/7).

Meanwhile, the value of the share down share value in the block will not be discussed. So also with the amount of share down that will be transferred to Total EP. As is known, the Minister of Energy and Human Resources Sudirman Said then, in 2015 decided to make room for Pertamina to share down maximum 30% in Mahakam Block to Total EP.

Lately, however, Total E & P Indonesie has sent a letter to the Minister of Energy and Mineral Resources Ignatius Jonan asking for a share down in Mahakam Block of 39% from the previous 30%, First Tranche Petroleum (FTP) to 0%, from the usual 20% of gross investment credit 20 %.

Then Total EP requested the acceleration of the depreciation period from five years to two years. Last Total EP is willing to pay a signature bonus of about US $ 13 million from the amount of US $ 41 million. It's on record, can get 39% stake. Related demand share down to 39%, Syamsu did not want to comment much.

MAP OF MAHAKAM BLOCK

Pertamina is still referring to the previous Letter of Minister of Energy and Mineral Resources (Sudirman Said), "said Syamsu Alam. Five demand of Total EP including the addition of share down to 39% until now has not been answered by Jonan. Although the addition of shares is the blessing of Minister of Energy and Mineral Resources on March 13, 2017 through the release official.

Another problem is, there is no clarity of investment fund of East Kalimantan Province Government (Kaltim) to be paid for Mahakam operation. Whether it will be borne by Pertamina entirely or charged to Total EP as well. Because with Participating Interest 10% to East Kalimantan, the initial funding deposit for investment is very large, from the total investment of around Rp 12 trillion-20 trillion per year.

The total EP letter letter, spokesman of the ESDM Ministry Sujatmiko also can not be sure when it will be answered.

Ready to drill Mahakam

While Syamsu said, in mid-July it will begin drilling wells funded by Pertamina. Until the end of the year, Pertamina plans to finance the drilling of 14-15 wells in the Mahakam block. 

      With the additional drilling expected, the Mahakam Block production is stable at about 1 billions of standard cubic feet (bcf) or it can increase from the current Mahakam Block gas production of 1.2 bcf.

Fahmi Radhi, an energy observer at Gajah Mada University, said that Pertamina is able to manage independently and even increase production. "Technology can be bought, experts can be hired, investment needs to be sought because the gas content of Mahakam is still big," he said.

Worker Total EP Change Clothes

     Starting January 1, 2018, Total EP workers totaling about 2,000 will change their clothing to employees of PT Pertamina Hulu Mahakam. On June 13, 2017, the National Workers Union of Total EP lndonesie had a meeting with Pertamina's Senior Vice President Human Resources (HR).

    Budi Satria, Chairman of the National Workers Union Total EP Indonesia, writes, all workers get a work offer letter from Pertamina Hulu Mahakam. Previously the Union of Workers was involved in the drafting of the work offer and the suitability of the text editor before it was given to SKK Migas and approved by the Ministry of Manpower.

"We are instructed to read and evaluate the work offer letter," Budi said.

    All of the Total EP workers have submitted a work offer letter from Pertamina Hulu Mahakam.

"We have signed autographs, just lacking the signature of HR Pertamina They get, we also get, January 1, 2018 we become Pertamina Hulu Mahakam".


    The facility or salary is the same as in Total EP "Includes the current position.

IN INDONESIA

Pertamina & Total Duduk Bersama Membahas Pembagian Saham

PT Pertamina akan mengebor hingga 15 sumur di Blok Mahakam untuk menaikkan produksi

PT Pertamina memastikan, pekan depan akan membahas rencana pengurangan kepemilikan saham (share down) Blok Mahakam dengan PT Total EP Indonesie. Direktur Hulu Pertamina, Syamsu Alam menyatakan pembahasan pekan depan itu lebih kepada soal teknis. "Kalau mau masuk seperti apa, mekanismenya seperti apa," jelas Syamsu, Rabu (5/7).

Sementara terkait nilai valuasi porsi share down di blok tersebut belum akan dibahas. Begitu juga dengan besaran share down yang akan dialihkan ke Total EP. Seperti diketahui, Menteri Energi dan Sumber Daya Manusia Sudirman Said ketika itu, pada tahun 2015 memutuskan memberi ruang bagi Pertamina melakukan share down maksimal 30% di Blok Mahakam ke Total EP.

Namun belakangan, Total E&P Indonesie telah mengirimkan surat kepada Menteri ESDM Ignasius Jonan agar meminta share down di Blok Mahakam sebesar 39% dari sebelumnya 30%, First Tranche Petroleum (FTP) menjadi 0%, dari yang biasanya 20% dari produksi kotor investment credit 20%. 

Lalu Total EP meminta percepatan masa depresiasi dari lima tahun menjadi dua tahun. Terakhir Total EP bersedia membayar bonus tandatangan sekitar US$ 13 juta dari jumlah US$ 41 juta. Ini dengan catatan, bisa mendapatkan 39% saham. Terkait permintaan share down menjadi 39% itu, Syamsu tidak mau banyak berkomentar. 

Pertamina masih mengacu pada Surat Menteri ESDM sebelumnya (Sudirman Said)," ujar Syamsu Alam. Lima permintaan Total EP termasuk penambahan share down menjadi 39% hingga kini belum dijawab oleh Jonan.  Padahal penambahan saham itu adalah restu Menteri ESDM pada 13 Maret 2017 melalui rilis resmi.

Masalah lain adalah, belum ada kejelasan dana investasi Pemerintah Propinsi Kalimantan Timur (Kaltim) yang harus disetorkan untuk operasional Mahakam. Apakah nanti akan ditanggung Pertamina seluruhnya atau dibebankan ke Total EP juga. Sebab dengan Participating Interest 10% ke Kaltim, setoran dana awal untuk investasi sangat besar, dari total investasi sekitar Rp 12 triliun-20 triliun per tahun.

Soal surat Total EP, Juru bicara Kementerian ESDM Sujatmiko juga belum bisa memastikan kapan akan akan dijawab. 

Siap ngebor Mahakam 

Sementara Syamsu bilang, pada pertengahan bulan Juli ini akan mulai dilakukan pemboran sumur yang didanai oleh Pertamina. Hingga akhir tahun Pertamina berencana membiayai pengeboran 14-15 sumur di Blok Mahakam. 

     Dengan tambahan pengeboran tersebut diharapkan, produksi Blok Mahakam stabil sekitar 1 billions of standard cubic feet (bcf) atau bisa meningkat dari produksi gas Blok Mahakam saat ini yang mencapai 1,2 bcf.

Fahmi Radhi Pengamat Energi Universitas Gajah Mada, mengatakan Pertamina mampu mengelola secara mandiri bahkan menaikkan produksi. "Teknologi bisa dibeli, tenaga ahli bisa disewa, butuh investasi bisa dicari karena kandungan gas Mahakam masih besar," kata dia.

Pekerja Total EP Ganti Baju

     Mulai 1 Januari 2018, pekerja Total EP yang berjumlah sekitar 2.000 akan berganti baju menjadi karyawan PT Pertamina Hulu Mahakam. Pada 13 Juni 2017 lalu, Serikat Pekerja Nasional Total EP lndonesie sudah melakukan pertemuan dengan Senior Vice President Human Resources (HR) Pertamina.

Budi Satria, Ketua Umum Serikat Pekerja Nasional Total EP Indonesia, menulis, seluruh pekerja mendapatkan surat penawaran kerja dari Pertamina Hulu Mahakam. Sebelumnya Serikat Pekerja dilibatkan dalah penyusunan draf penawaran kerja dan kesesuaian redaksi naskah sebelum diberikan ke SKK Migas dan disetujui Kementerian Tenaga Kerja. 

"Kami instruksikan agar membaca dan mengevaluasi Surat penawaran kerja itu," kata Budi.

Semua pekerja Total EP sudah menyerahkan surat penawaran kerja Pertamina Hulu Mahakam. 

"Kami sudah tanda tangan, hanya kurang tandatangan HR Pertamina. Mereka mendapatkan, kami juga mendapatkan, 1 Januari 2018 kami menjadi Pertamina Hulu Mahakam" .


Fasilitas atau gaji sama seperti di Total EP "Termasuk jabatan saat ini.

Kontan, Page-14, Thursday, July 6, 2017

The Abadi Field Project in Masela Block Begins Starting

One year and three months stopped operations, the Masela Field Abadi project started showing signs of resuming. Vice President of Corporate Services of lnpex Corporation Nico Muhyiddin said that Inpex, as the operator of Masela Block, has obtained an official letter from the government to hold pre front end engineering design (feed).

To start the pre feed, lnpex is conducting a market survey. In the survey simultaneously conducted a study and data collection of prospective buyers of gas produced by Masela Block later. In addition, Inpex mapping technically, commercially and socially. It is expected that the whole process can be completed soon.

"Market surveys have to be completed this month," said Nico, Wednesday (6/7).

MAP OF MASELA BLOCK, WORKING AREA INPEX JAPAN

After the market survey is completed, Inpex will proceed to the bidding process by direct appointment, This is in accordance with the provisions of the 007 Revision 4 Working Guidelines.

"Inpex will follow the 007 Revision Workflow Guidelines that will be effective July 28," Nico said.

If the winning bidder has been obtained, Inpex can start a pre feed, which is targeted this year as well. Previously lnpex has proposed five clauses of Masela block project work. Namely, the addition of LNG plant capacity from 7.5 million tonnes per annum (MTPA) to 9.5 MTPA, 10-year contract addition, 15% internal rate of return, cost recovery during exploration and licensing from the government.

IN INDONESIA

Proyek Lapangan Abadi di Blok Masela Mulai Berjalan

Satu tahun tiga bulan berhenti beroperasi, proyek Lapangan Abadi Blok Masela mulai menunjukkan tanda-tanda dimulai lagi. Vice President Corporate Service lnpex Corporation Nico Muhyiddin mengatakan, Inpex selaku operator Blok Masela sudah mendapatkan Surat resmi dari pemerintah untuk menggelar pre front end engineering design (feed).

Untuk memulai pre feed, lnpex sedang melakukan survei pasar. Dalam survei tersebut sekaligus dilakukan Studi dan pengumpulan data calon-calon pembeli gas hasil produksi Blok Masela nanti.  Selain itu, Inpex melakukan pemetaan secara teknikal, komersial dan sosial. Diharapkan seluruh proses ini bisa selesai segera. 

"Survei market sudah harus selesai bulan-bulan ini," tegas Nico, Rabu (6/7). 

Setelah survei market selesai, lnpex akan melanjutkan ke proses tender dengan penunjukkan langsung, Hal tersebut sesuai ketentuan dalam Pedoman Tata Kerja 007 Revisi 4. 

"lnpex akan mengikuti Pedoman Tata Kerja 007 revisi yang akan efektif 28 Juli nanti," ujar Nico. 

Jika perusahaan pemenang tender sudah didapat, Inpex bisa memulai pre feed, yang targetnya tahun ini juga. Sebelumnya lnpex telah mengajukan lima klausul pengerjaan proyek blok Masela. Yakni penambahan kapasitas kilang LNG dari 7,5 million tonnes per annum (MTPA) menjadi 9,5 MTPA, penambahan kontrak selama 10 tahun, internal rate of return 15%, cost recovery selama masa eksplorasi dan perizinan dari pemerintah.

Kontan, Page-14, Thursday, July 6, 2017

East Kalimantan Block Can Be Returned

GROSS SPLIT SCHEME

The government recommends that PT Pertamina return the East Kalimantan Block to the government if management with a gross profit sharing scheme is less favorable to the company.

Since the beginning of this year, the government has reimbursed revenue-sharing schemes with production costs returned to contractors or cost recover with gross split for new contracts. Meanwhile, for the existing contracts still use the cost recovery scheme.

Through a gross split sharing scheme, oil and gas production costs are borne by contracting contractors. In January 2017, the Minister of Energy and Mineral Resources (EMR) lgnasius Jonan commissioned Pertamina to take over eight working areas which would expire its contract with a gross profit sharing scheme regulated in Minister of Energy and Mineral Resources Regulation no. 8/2017.

Map of  East Kalimantan Block

The eight working areas are Tuban-East Java (JOB Pertamina-PetroChina East Java), Ogan Komering-South Sumatra Block (JOB Pertamina Talisman), Sanga-Sanga-East Kalimantan Block (Saka Energi); Southeast Sumatra Block (SES) -Lampung (CNOOC SES Limited); East-Kalimantan Block (Total E & P Indonesie); East-Kalimantan Attaka Block (Chevron), East Kalimantan-East Kalimantan (Chevron Indonesia Company) Block and North Sumatera Offshore-Aceh (Pertamina) Block.

Map of  East Kalimantan Block

EMR Deputy Minister of Energy and Mineral Resources, Arcandra Tahar, said that instead of adding time for the next 3 months, he suggested that the company immediately return the East Kalimantan Block if its development is not considered to be economically viable.

Map of Working Area Exxon Mobil and JOB-PPEJ 

According to him, the ESDM Ministry has just received a letter of proposal from Pertamina two weeks ago. Currently, his side has not given a formal answer to the company.

"So for the East Kalimantan, we suggest that if it is not economical, directly returned to the government," he said on Wednesday (5/7).

If Pertamina immediately returns East Kalimantan Block, the government will immediately conduct an auction in order to attract other interested business actors. Meanwhile, the offshore working area will end its contract period on October 24, 2018. Since early 2016, Chevron as operator has stated it will not renew the contract.

"Because time is very tight, we want, if not economical, we speed up the auction."

Earlier, Upstream Director of Pertamina Syamsu Alam said it had submitted the results of a study on the development of seven working areas that would expire and become a gross split contract.

The transition from the cost recovery contract to gross split resulted in the contractor being no longer able to get a return on operating costs. That way, all expenses incurred to be borne by the contractor and the revenue share set by the government have accommodated all possible costs.

The Company proposes additional review period for 3 months. If the government agrees, the company will review East Kalimantan's economic development. However, if the government does not agree, it returns East Kalimantan.

"The extension of our 3-month study from June to September has been delivered."

IN INDONESIA

Blok East Kalimantan Bisa Dikembalikan

Pemerintah menyarankan agar PT Pertamina mengembalikan Blok East Kalimantan kepada pemerintah bila pengelolaan dengan Skema bagi hasil kotor atau gross split kurang menguntungkan perseroan.

Sejak awal tahun ini, pemerintah mengganti skema bagi hasil dengan biaya produksi yang dikembalikan kepada kontraktor atau cost recover dengan gross split untuk kontrak baru. Sementara itu, bagi kontrak eksis tetap menggunakan skema cost recovery.

Melalui skema bagi hasil gross split, biaya produksi migas ditanggung oleh kontraktor kontrak kerja sama. Pada Januari 2017, Menteri Energi dan Sumber Daya Mineral (ESDM) lgnasius Jonan menugaskan kepada Pertamina untuk mengambil alih delapan wilayah kerja yang akan habis masa kontraknya dengan skema bagi hasil kotor yang diatur dalam Peraturan Menteri ESDM No. 8/2017.

Kedelapan wilayah kerja tersebut yakni Blok Tuban-Jawa Timur (JOB Pertamina-PetroChina East Java), Blok Ogan Komering-Sumatra Selatan (JOB Pertamina Talisman), Blok Sanga-Sanga-Kalimantan Timur (Saka Energi); Blok Southeast Sumatera (SES)-Lampung (CNOOC SES Limited); Blok Tengah-Kalimantan Timur (Total E&P Indonesie) ; Blok Attaka-Kalimantan Timur (Chevron), Blok East Kalimantan-Kalimantan Timur (Chevron Indonesia Company), dan Blok North Sumatera Offshore-Aceh (Pertamina).

Wakil Menteri ESDM Arcandra Tahar mengatakan daripada menambah waktu untuk melakukan kajian selama 3 bulan ke depan, dia menyarankan agar perseroan langsung mengembalikan Blok East Kalimantan bila pengembangannya dianggap tidak sesuai skala ekonomi.

Menurutnya, Kementerian ESDM baru saja menerima surat usulan dari Pertamina dua pekan lalu. Saat ini, pihaknya belum memberikan jawaban secara resmi kepada perseroan.

“Jadi untuk yang East Kalimantan, kita menyarankan kalau seandainya tidak ekonomis, langsung dikembalikan ke pemerintah,” ujarnya, Rabu (5/7).

Bila Pertamina segera mengembalikan Blok East Kalimantan, pemerintah segera melakukan lelang agar bisa menjaring pelaku usaha lain yang berminat. Adapun, wilayah kerja di lepas pantai itu akan berakhir masa kontraknya pada 24 Oktober 2018. Sejak awal 2016, Chevron sebagai operator telah menyatakan tidak akan melakukan perpanjangan kontrak. 

“Karena waktu sangat ketat, kami menginginkan, kalau tidak ekonomis, kita percepat lelang.” 

Sebelumnya, Direktur Hulu Pertamina Syamsu Alam mengatakan, pihaknya telah menyerahkan hasil kajian pengembangan tujuh wilayah kerja yang akan habis masa kontraknya dan beralih menjadi gross split.

Peralihan dari kontrak bagi hasil cost recovery menjadi gross split menyebabkan kontraktor tidak bisa lagi mendapatkan pengembalian biaya operasi. Dengan begitu, seluruh beban biaya yang dikeluarkan menjadi tanggungan kontraktor dan bagi hasil yang ditetapkan dengan pemerintah telah mengakomodasi seluruh kemungkinan biaya yang akan dikeluarkan.

Perseroan mengusulkan penambahan masa kajian lagi untuk 3 bulan. Bila pemerintah setuju, perseroan akan mengkaji keekonomian pengembangan East Kalimantan. Namun, bila pemerintah tidak setuju, pihaknya mengembalikan East Kalimantan. 

“Perpanjangan kajiannya 3 bulan dari Juni sampai September sudah kami sampaikan."

Bisnis Indonesia, Page-22, Thursday, July 6, 2017

Easy incentives

The contract contractor proposes that Fiscal Incentives in the form of tax facilities can be obtained easily.

Contractors incorporated in the Indonesian Petroleum Association (IPA) highlighted the Government Regulation No.27 / 2017 regarding the amendment of Government Regulation No.79 / 2010 concerning Income Tax and Refund of Operating Costs. 

     IPA Executive Director Marjolijn Wajong said it appreciated the government's efforts to provide incentives despite not including all proposals of business actors, ie all upstream oil and gas activities are not subject to additional taxes or applying the principle of assume and discharge.

According to him, government efforts to buy tax facilities cause uncertainty. The reason, for the stages of exploitation is only a certain field that can pay tax facilities. Implementation of taxation for the exploratory contractor is still waiting for further regulations from the Ministry of Finance in order to enjoy the facilities taxation.

For the work areas still in exploration stage, Marjolijn said, this regulation change could trigger the rise of new oil and gas reserves. For work areas that are already in the exploitation or production phase, he hopes that the government will set an easy condition to obtain fiscal incentives.

The reason is that, before the wassuance of Government Regulation 79/2010, the contractor did not need to bear additional tax burden. "Exploitation is still possible to tax facilities but have to ask the government first, not automatically For the exploitation of the conditions are easy, so do not be too complicated," he said.

In a copy of Government Regulation No. 27/2017, on Refundable Operating Costs and the Treatment of Income Taxes in the Upstream Oil and Gas Business Sector, the government is amending and amending certain provisions. Existing contracts using production sharing contract (PSC) remain valid until the contract term expires.

Meanwhile, contractors contracted before the Oil and Gas Law No. 22/2001 were signed, before and after the enactment of Government Regulation 79/2010 have the option to make adjustments no later than six months after the publication was published.

Possible adjustments are the scaling of the profit sharing scheme into a dynamic split-sharing scheme as set forth in article 10A. The implementation of this dynamic revenue-sharing scheme will then accommodate the oil price factor so that the contractor's activities can remain profitable. Then, adjustment related tax facilities for exploration and exploitation activities.

The facilities will be given by the Minister of Finance on the consideration of the project's economy and the Minister of Energy and Mineral Resources. As a result, other contractors without consideration of the field economy in accordance with the criteria of the government can not enjoy the facilities taxation.

Separately, EMR Vice Minister of Arcandra Tahar acknowledged that PP 27/2017 did not accommodate the entrepreneur's wishes fully. However, it is the maximum effort that the government has made to increase exploration and exploitation activities. Because the regulation is not only involving the Ministry of Energy and Mineral Resources, but the Ministry of Finance.

The national upstream oil and gas investment tends to decline since 2013. The realization of investment of US $ 20.3 billion in 2013 and 2014, fell to US $ 15.3 billion in 2015 and to US $ 11.1 billion in 2016.

Investing interest in new working areas also fell especially in 2016 in the absence of new signed cooperation contracts and 17 Work Areas offered.

Fiscal Incentives in oil and gas exploration activities

1. Exemption of import duty.

2. Incentives Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM) on the acquisition of certain taxable goods or services.

3. Incentives Value Added Tax (VAT) & Sales Tax (VAT) on import of certain taxable goods.

4. Value Added Tax Incentives (VAT) & Sales Tax (VAT) on the utilization of intangible taxable goods from outside the customs area.

5. Incentive Value Added Tax (VAT) and Sales Tax (VAT) on the utilization of certain taxable services from outside the customs area.

6. The exemption of the withholding of Income Tax (PPh) Article 22 on imports of goods and deductions of Land and Building Tax (PBB) is 100% payable stipulated in the Annual Income Tax Return (SPPT).

IN INDONESIA

Permudah lnsentif

Kontraktor kontrak kerja sama mengusulkan agar insentif Fiskal berupa fasilitas perpajakan bisa diperoleh dengan mudah.

Kontraktor yang tergabung dalam Indonesian Petroleum Association (IPA) menyoroti secara khusus Peraturan Pemerintah (PP) No. 27/2017 tentang perubahan PP No.79/2010 tentang Pajak Penghasilan dan Pengembalian Biaya Operasi. 

     Direktur Eksekutif IPA Marjolijn Wajong mengatakan pihaknya mengapresiasi upaya pemerintah untuk memberikan insentif meskipun belum memasukkan seluruh usulan pelaku usaha, yakni semua kegiatan hulu migas tidak dibebankan pajak-pajak tambahan atau menerapkan prinsip assume and discharge.

Menurutnya, upaya pemerintah untuk membelikan fasilitas perpajakan menimbulkan ketidakpastian. Pasalnya, untuk tahapan eksploitasi hanya lapangan tertentu yang bisa memperoIeh fasilitas perpajakan. Implementasi perpajakan bagi kontraktor eksplorasi pun masih menunggu aturan lebih Ianjut dari Kementerian Keuangan agar bisa menikmati fasilitas perpajakan.

Bagi wilayah kerja yang masih dalam tahap eksplorasi, kata Marjolijn, perubahan peraturan ini bisa  menjadi pemicu naiknya kegiatan pencarian cadangan minyak dan gas baru. Bagi wilayah kerja yang sudah dalam tahap eksploitasi atau produksi, dia berharap agar pemerintah menetapkan syarat yang mudah untuk memperoleh insentif fiskal.

Pasalnya, sebelum PP 79/2010 terbit, kontraktor tidak perlu menanggung beban pajak tambahan. "Eksploitasi tetap ada kemungkinan dapat fasilitas perpajakan tapi harus minta ke pemerintah dulu, tidak otomatis. Untuk yang eksploitasi dipermudah syaratnya. Jadi jangan terlalu rumit," ujarnya 

Dalam salinan Peraturan Pemerintah Nomor 27/2017, tentang Biaya Operasi yang Dapat Dikembalikan dan Perlakuan Pajak Penghasilan di Bidang Usaha Hulu Minyak dan Gas Bumi, pemerintah mengganti dan mengubah beberapa ketentuan. Kontrak eksisting menggunakan kontrak bagi hasil (production sharing contract/PSC) tetap berlaku hingga masa kontrak berakhir.

Adapun, kontraktor yang berkontrak sebelum Undang-Undang Migas No.22/2001 diteken, sebelum dan sesudah PP 79/2010 terbit memiliki pilihan untuk melakukan penyesuaian paling lambat enam bulan setelah beleid tersebut terbit. 

Penyesuaian yang mungkin dilakukan yakni pengubahan skema bagi hasil menjadi skema bagi hasil dinamis atau sliding scale split seperti yang diatur dalam pasal 10A. Penerapan skema bagi hasil dinamis ini nantinya mengakomodasi faktor harga minyak sehingga kegiatan kontraktor bisa tetap menguntungkan. Kemudian, penyesuaian terkait fasilitas perpajakan bagi kegiatan eksplorasi maupun eksploitasi.  

Fasilitas tersebut akan diberikan Menteri Keuangan atas pertimbangan keekonomian proyek dan Menteri Energi dan Sumber Daya Mineral. Alhasil, kontraktor lain tanpa pertimbangan keekonomian lapangan yang sesuai dengan kriteria pemerintah tidak bisa menikmati fasilitas perpajakan.

Terpisah, Wakil Menteri ESDM Arcandra Tahar mengakui PP 27/2017 memang belum mengakomodasi keinginan pelaku usaha sepenuhnya. Namun, hal itu merupakan upaya maksimum yang telah dilakukan pemerintah untuk meningkatkan kegiatan eksplorasi dan eksploitasi. Pasalnya, peraturan ini bukan hanya melibatkan Kementerian ESDM, melainkan Kementenan Keuangan.

Investasi hulu migas nasional cenderung turun sejak 2013. Dari realisasi investasi US$20,3 miliar di 2013 dan 2014, turun menjadi US$15,3 miliar di 2015 dan menjadi US$11,1 miliar di 2016.

Minat investasi pada wilayah kerja baru pun turun terutama pada 2016 dengan tidak adanya kontrak kerja sama baru yang ditandatangani dan 17 Wilayah Kerja yang ditawarkan. 

Insentif Fiskal dalam kegiatan eksplorasi migas

1. Pembebasan pungutan bea masuk.

2. lnsentif Pajak Pertambahan Nilai (PPN) & Pajak Penjualan Atas Barang Mewah (PPnBM) atas perolehan barang atau jasa kena pajak tertentu.

3. lnsentif Pajak Pertambahan Nilai (PPN) & Pajak Penjualan (PPn) terhadap impor barang kena pajak tertentu.

4. Insentif Pajak Pertambahan Nilai (PPN) & Pajak Penjualan (PPn) terhadap pemanfaatan barang kena pajak tidak berwujud dari Iuar daerah pabean.

5. Insentif Pajak Pertambahan Nilai (PPN) & Pajak Penjualan (PPn) terhadap pemanfaatan jasa kena pajak tertentu dari Iuar daerah pabean.

6. Pembebasan pemunhutan Pajak Penghasilan (PPh) Pasal 22 atas impor barang dan pengurangan Pajak Bumi dan Bangunan (PBB) 100% terutang yang tercantum dalam Surat Pemberitahuan Pajak Tahunan (SPPT).

Bisnis Indonesia, Page-3, Thursday, July 6, 2017

Four Oil and Gas Projects Become Priorities

The government decides on four oil and gas blocks (oil and gas) projects in the National Strategic Project (PSN) list. This is because the four projects are producing gas with a large capacity that will meet future energy needs.

The four projects are Berau Ltd's British Petroleum (BP) liquefied natural gas (LNG) liquefied natural gas (LNG), development of Masela Block operated by lnpex Corporation, Chevron's deepwater development (IDD) gas project and the Jambaran-Tiung unitization unit Blue operated by PT Pertamina EP Cepu.

"Tiung Biru Jambaran Field, IDD, Tangguh, Masela, all gas. It's the future of our energy that seems to be a lot of gas than oil. Therefore, we must be efficient, using the right technology, "said Deputy Minister of Energy and Mineral Resources Arcandra Tahar

With the list of PSN, the four projects are expected to increase the country's foreign exchange reserves. The four projects will also be able to meet the needs of domestic gas without the need to import. "Later this project can meet the needs of 10-20 years," he said.

Due to priority entry, Arcandra continues the government will strive to make development as fast as possible primarily related to the use of technology. Moreover, by entering PSN, the construction of the four projects will be regulated in the Presidential Regulation (Perpres) so that it can get facilities such as land acquisition and the ease of licensing.

Previously, there were three national oil and gas projects which also included national strategic projects, namely Bontang Refinery, Tuban Refinery, and Refinery Development Masterplan Program (RDMP) of Cilacap Refinery.

MAP OF OIL REFINERY IN INDONESIA

IN INDONESIA

Empat Proyek Migas Menjadi Prioritas

Pemerintah memutuskan empat proyek blok minyak dan gas bumi (migas) masuk daftar Proyek Strategis Nasional (PSN). Hal itu disebabkan keempat proyek itu menghasilkan gas dengan kapasitas besar yang akan memenuhi kebutuhan energi masa depan.

Keempat proyek tersebut adalah kilang gas alam cair/LNG Tangguh Train 3 milik British Petroleum (BP) Berau Ltd, pengembangan Blok Masela yang dioperasikan lnpex Corporation, proyek lapangan gas laut dalam (Indonesia deepwater development/IDD) milik Chevron dan lapangan unitisasi Jambaran-Tiung Biru yang dioperasikan PT Pertamina EP Cepu.

“Lapangan Jambaran Tiung Biru, IDD, Tangguh, Masela, semua gas. Ini masa depan energi kita yang kelihatannya banyak gas daripada minyak. Karena itu, kita harus efisien, menggunakan teknologi yang tepat,” kata Wakil Menteri ESDM Arcandra Tahar

Dengan masuk daftar PSN, keempat proyek itu diharapkan dapat menambah cadangan devisa negara. Keempat proyek juga dipastikan akan dapat memenuhi kebutuhan gas domestik tanpa perlu mengimpor. “Nanti proyek ini bisa memenuhi kebutuhan 10-20 tahun,” kata dia.

     Karena masuk prioritas, Arcandra melanjutkan pemerintah akan berupaya agar pengembangan dapat dilakukan secepat mungkin terutama terkait dengan penggunaan teknologi. Terlebih, dengan masuk PSN, pembangunan keempat proyek itu akan diatur di dalam Peraturan Presiden (Perpres) sehingga bisa mendapatkan kemudahan seperti pembebasan lahan serta kemudahan perizinan.

Sebelumnya, ada tiga proyek migas nasional yang juga masuk proyek strategis nasional, yakni Kilang Bontang, Kilang Tuban, dan Refinery Development Masterplan Program (RDMP) Kilang Cilacap.

Media Indonesia, Page-17, Wednesday, July 5, 2017

ONWJ Block Oil Production Will Be Revised

PT Pertamina said it would revise Offshore Offshore Block's work plan and budget (WP & B) North West Java (ONWJ) after the implementation of gross split scheme in its oil and gas contract.

Upstream Director of Pertamina Syamsu Alam said the implementation of the gross split scheme in the new production sharing contract (PSC) of Block ONWJ is going pretty well. However, it is necessary to adapt WP & B after the use of the gross split scheme. WP & B Block ONWJ for this year has been approved since last year, while a new contract was signed earlier this year.

"Must talk to SKK Migas (Special Unit for Upstream Oil and Gas Business Executives) because there was WP & B last year. But if oil and gas production [Block ONWJ], there is little short, "he said in Jakarta, Tuesday (4/7).

General Manager of PT Pertamina Hulu Energi Offshore North West Java Irwansyah had stated, Oil and Gas Production Block ONWJ in 2017 is in accordance WP & B is targeted higher than last year. Crude oil production in 2017 is targeted at 36 thousand barrels per day (bpd) and gas 172 million standard cubic feet per day / mmscfd.

While last year's realization, oil production amounted to 36 thousand bpd and gas 164-165 mmscfd. In addition to revising the work plan, Alam also said that it has submitted an additional revenue sharing proposal for ONWJ Block to the government. Under the contract signed earlier this year, revenue share for the state on the ONWJ Block compared to Pertamina is set at 37.5: 62.5 for gas and 42.5: 57,5 ​​for oil.

From the results of the study, he said the company still needs an additional split to boost the economy of oil and gas blocks off the north coast of West Java. 

In addition [split] is still in ministerial discretion. Already delivered, hopefully given, "he said.

The discretion in question is the discretion of the Minister of Energy and Mineral Resources as set out in Regulation of Minister of Energy and Mineral Resources Number 8 Year 2017 which regulates the gross split contract. In Article 7 mentioned, when the calculation of commercialization of the field did not reach certain economies, contractors get a maximum split of 5%.

In contrast, in the calculation of commercialization of the field exceeds a certain economy, the state may take a 5% split. President Director of PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi once mentioned that there are several factors that reduce the economics of ONWJ Block. 

    In detail, the unrecovered cost, the Value Added Tax (VAT) which is the full responsibility of the contractor, the investment cost of the participation rights granted to the local government by 10%, and the rental fee considering the production facility in ONWJ Block becomes government property because the previous contract used cost recovery scheme.

Meanwhile, Vice Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar stated that ONWJ Block management is more profitable when using the gross split scheme rather than cost recovery. It has already calculated this comparison directly and has been discussed with Pertamina.

Related to the proposed additional split, he said Pertamina may submit it. "Just ask it first, obviously gross split is more profitable," he said.

The government recorded oil reserves in ONWJ Block is still 309.8 million barrels and gas 1,114.9 billion cubic feet. In the new contract, Pertamina undertakes to disburse US $ 82.3 million for the first three years and US $ 8.5 billion over a 20-year contract to work on the ONWJ Block potential. In addition, the contract also mentions gross receipts from ONWJ Block of USS 14.8 billion, which is a state quota of US $ 5.7 billion.

Wait for the Government

Pertamina has also submitted the study of eight termination blocks assigned to the company. Arcandra revealed, it is still evaluating the results of studies from Pertamina. This is in accordance with applicable procedures.

"Every block of oil and gas given to Pertamina is evaluated and they will submit what they need," he said.

Alam revealed that, along with submitting the results of the study, his side also filed a number of requests related to the management of seven oil and gas blocks. Unfortunately, Nature is reluctant to detail this request. But specifically for the East Kalimantan Block, it requested additional time of three months until September to review again.

"For the East Kalimantan Block, we ask for additional time because the cost of ASR is quite large and result in less good economy," said Alam.

As is known, the Government commissioned Pertamina to manage eight blocks whose contract expires in 2018.

IN INDONESIA

Produksi Migas Blok ONWJ Bakal Direvisi

PT Pertamina menyatakan akan merevisi rencana kerja dan anggaran (work plan and budget/WP&B) Blok Offshore North West Java (ONWJ) setelah diterapkannya skema bagi hasil kotor (gross split) dalam kontrak migasnya.

Direktur Hulu Pertamina Syamsu Alam menuturkan, penerapan skema gross split dalam kontrak kerja sama (production sharing conctract/ PSC) yang baru Blok ONWJ berjalan cukup bagus. Meski demikian, diakuinya perlu ada penyesuaian WP&B setelah penggunaan skema gross split ini. 

WP&B Blok ONWJ untuk tahun ini telah disetujui sejak tahun lalu, sementara kontrak baru diteken pada awal tahun ini.

“Harus bicara dengan SKK Migas (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi) karena ada WP&B tahun lalu. Tetapi kalau produksi migas [Blok ONWJ], ada sedikit short,” katanya di Jakarta, Selasa (4/7).

General Manager PT Pertamina Hulu Energi Offshore North West Java Irwansyah sempat menyatakan, Produksi migas Blok ONWJ pada 2017 ini sesuai WP&B ditargetkan lebih tinggi dari tahun lalu. Produksi minyak mentah pada 2017 ditargetkan 36 ribu barel per hari (bph) dan gas 172 million standard cubic feet per day/mmscfd.

Sementara realisasi pada tahun lalu, produksi minyak sebesar 36 ribu bph dan gas 164-165 mmscfd. Selain merevisi rencana kerja, Alam juga menuturkan telah mengajukan usulan tambahan bagi hasil untuk Blok ONWJ kepada pemerintah. Berdasarkan kontrak yang ditandatangani awal tahun ini, bagi hasil untuk negara di Blok ONWJ dibandingkan dengan bagian Pertamina ditetapkan sebesar 37,5:62,5 untuk gas dan 42,5:57,5 untuk minyak.

Dari hasil kajian yang dilakukan, dikatakannya perseroan tetap membutuhkan tambahan split untuk mendongkrak keekonomian blok migas di lepas pantai utara Jawa Barat ini.

Tambahannya [split] masih dalam diskresi menteri. Sudah disampaikan, mudah-mudahan diberikan,” kata dia.

Diskresi yang dimaksud adalah diskresi Menteri ESDM sebagaimana ada dalam Peraturan Menteri ESDM Nomor 8 Tahun 2017 yang mengatur soal kontrak gross split. Dalam Pasal 7 disebutkan, ketika perhitungan komersialisasi lapangan tidak mencapai keekonomian tertentu, kontraktor mendapat tambahan split maksimal 5%. 

Sebaliknya, dalam perhitungan komersialisasi lapangan melebihi keekonomian tertentu, maka negara boleh mengambil split 5%. Presiden Direktur PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi pernah menyebutkan ada beberapa faktor yang mengurangi keekonomian Blok ONWJ.

     Rincinya, adanya unrecovered cost, Pajak Pertambahan Nilai (PPN) yang menjadi tanggungan kontraktor sepenuhnya, tanggungan biaya investasi dari hak partisipasi yang diberikan ke pemerintah daerah sebesar 10%, dan adanya biaya sewa mengingat fasilitas produksi di Blok ONWJ menjadi milik pemerintah karena kontrak sebelumnya menggunakan skema cost recovery.

Sementara itu, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar menyatakan, pengelolaan Blok ONWJ lebih menguntungkan ketika menggunakan skema gross split daripada cost recovery. Pihaknya sudah menghitung langsung perbandingan ini dan telah dibicarakan dengan Pertamina.

Terkait usulan tambahan split, dikatakannya Pertamina boleh saja mengajukannya. “Ya ajukan saja dulu, yang jelas gross split lebih untung,” kata dia.

Pemerintah mencatat cadangan minyak di Blok ONWJ tercatat masih 309,8 juta barel dan gas 1.114,9 miliar kaki kubik. Dalam kontrak baru, Pertamina menyanggupi untuk mengelurakan dana sebesar US$ 82,3 juta selama tiga tahun pertama dan US$ 8,5 miliar sepanjang masa kontrak 20 tahun untuk menggarap potensi Blok ONWJ. Selain itu, kontrak juga menyebutkan penerimaan kotor dari Blok ONWJ sebesar USS 14,8 miliar di mana yang merupakan jatah negara US$ 5,7 miliar.

Tunggu Pemerintah

Pertamina juga telah menyampaikan hasil kajian delapan blok terminasi yang ditugaskan pengelolaannya kepada perseroan. Arcandra mengungkapkan, pihaknya masih mengevaluasi hasil kajian dari Pertamina. Hal ini memang sesuai prosedur yang berlaku.

“Setiap blok migas yang diberikan pengelolaannya kepada Pertamina dievaluasi dan mereka akan ajukan yang diperlukan,” kata dia.

Alam mengungkapkan, bersamaan dengan menyerahkan hasil kajian tersebut, pihaknya juga mengajukan sejumlah permintaan terkait pengelolan tujuh blok migas. Sayangnya, Alam enggan merinci permintaan ini. Namun khusus untuk Blok East Kalimantan, pihaknya meminta tambahan waktu tiga bulan hingga September nanti untuk melakukan kajian lagi.

“Untuk Blok East Kalimantan, kami minta tambahan waktu karena biaya ASR cukup besar dan mengakibatkan keekonomian kurang bagus,” kata Alam.

Seperti diketahui, Pemerintah menugaskan Pertamina untuk mengelola delapan blok yang kontraknya habis pada 2018. 

Investor Daily, Page-9, Wednesday, July 5, 2017