TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Government launches tax exemption app for imported oil and gas equipment

The new app is intended to simplify the process of applying for a tax exemption for imported exploration equipment.

Norman Harsono (The Jakarta Post)
Jakarta
Tue, October 15, 2019

Share This Article

Change Size

Government launches tax exemption app for imported oil and gas equipment Stock image of an offshore oil and gas platform (Shutterstock/File)

S

ix governmental bodies launched in Jakarta on Monday an application for oil and gas companies to apply for duty exemptions on imported exploration equipment.

The Finance Ministry said in a statement that the purpose of the app was to streamline and simplify the application process for the Finance Ministry Exemption Letter (SKEP).

“Most importantly, the [approval] waiting time is slashed from 42 working days to only 15 working days, which means we have reduced the waiting time by 50 percent,” said Mochamad Agus Rofiudin, who heads the ministry's National Single Window Agency.

The Finance Ministry issued the tax exemptions through regulations No. 177/2007, No. 178/2007 and No. 179/2007 to incentivize oil and gas exploration in the country. 

The prior regulation exempted exploration equipment from import duties on the condition that the equipment was neither produced in Indonesia nor produced in sufficient quantities.

“It just makes [the application process] faster,” commented acting oil and gas director general Djoko Siswanto of the Energy and Mineral Resources Ministry.

The app is called the Single Submission Fiscal Facility on Importing Items for Upstream Oil and Gas Activities.

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.