Indonesia sets measures to boost oil, gas sectorStaff Writer | September 26, 2016
The Indonesian government is set to provide new incentives to boost investment and exploration in oil and gas sector in the country.
Energy Indonesia will free import VAT for oil, gas, and mining
Similar tax revocations will also be applied on mining firms during their production periods, highly expected to further improve the project's economical aspect.
The minister said the government will also free the income tax (PPh) on amount of cost sharing. The cost comes from the use of government's necessities in upstream oil and gas production by oil and gas firms.
The PPh elimination will also be applied on the mining firm's overhead cost allocation spent by their head office in Indonesia, she added.
"With this, we expect oil and gas sector would be more attractive and new investments would emerge in Indonesia," the minister said. ■