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Jakarta Post

Gross split scheme to stay — with slight improvements

  • Stefanno Reinard Sulaiman

    The Jakarta Post

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Jakarta   /   Tue, January 29 2019   /  02:38 am
Arcandra Tahar (seto wardhana)

Arcandra Tahar (seto wardhana)The government has said the controversial gross split scheme in oil and gas contracts will not be retracted because it is attracting oil and gas investments in Indonesia, although the tax policy needs to be improved.Deputy Energy and Mineral Resources Minister Arcandra Tahar said instead of annulling the gross split scheme, the government was in the process of discussing land and building tax (PBB) incentives in oil and gas contracts in a bid to lure more investors.“We are grateful that support for the gross split scheme keeps coming and getting bigger […] Several existing oil and gas contractors are willing to alter their contracts even before they end.”He added that up to 37 oil and gas contracts were using gross split schemes. “The gross split [scheme] won’t be reviewed further; we will only improve the tax aspect. We are currently negotiating p...