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Businesses welcome one-stop audit policy in upstream oil, gas sector
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Pertamina Hulu Energi West Madura Offshore (PHE WMO) workers are moved in a personnel basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. The government has simplified the audit of upstream oil and gas activities under the cost-recovery scheme. (JP/Wahyoe Boediwardhana)
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il and gas players have welcomed the government’s decision to simplify the audit of upstream oil and gas activities under the cost-recovery scheme, saying that it will lead to higher efficiency and subsequently improve the business climate.
The Finance Ministry announced on Wednesday that the audit of exploration and exploitation activities under the scheme, in which the government reimburses contractors for their costs, would be carried out by one task force comprising the ministry’s tax office, the Development Finance Comptroller (BPKP) and the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
At present, the three institutions carry out a different audit alternately.
Read also: Govt braces for big reimbursement from Mahakam, Jangkrik fieldsIndonesian Petroleum Association (IPA) executive director Marjolijn Wajong appreciated the move, which she acknowledged would facilitate an easier audit process.
“This is a very positive thing because the collaboration between the different institutions will make the audit process simpler,” she said Thursday.
Sammy Hamzah, the head of energy and mineral resources division at the Indonesian Employers Association (Apindo), also concurred with Marjolijn, saying the new audit policy would minimize the risk of disputes arising from different findings from the three institutions.
SKKMigas spokesperson Wisnu Prabawa Taher also expected the one-stop audit policy to lead to improved efficiency, whether in terms of time and cost.
“The target is certainly to reduce costs and increase profitability in upstream oil and gas activities,” Wisnu said, adding that the structure of the new task force would later be stipulated in a finance ministerial decree. (lnd)
