Jakarta, May 5 (Antara) - The government has changed its production sharing contract (PSC) scheme in its cooperation with contractors (KKKS) in the oil and gas exploration business in the country.
It has introduced the adoption of the Gross Split PSC scheme, replacing the Cost Recovery PSC system, claiming that the investment process has become smoother and many oil working areas have received investment from contractors.
"It is not true that there is only one contractor who has made investment through the gross split system. Since January 2017, up until early in May 2018, there have been 16 working areas that have received investment using the gross split scheme," Agung Pribadi, the head of Information and Public Cooperation of the Energy and Mineral Resources (ESDM) Ministry, said in Jakarta on Friday (May 4).
He made the statement clarifying that the gross split scheme did not discourage businesses to make investment in the oil and gas sector.
Economic and Political analyst Faisal Basri earlier noted that the gross split scheme imposed in the oil and gas in Indonesia has caused the decline of investment in that sector.
"The scheme causes investment in the oil and gas sector in the country to decrease in the last one year," Basri stated, after speaking at the 5th Regional Accounting Conference (UB) at the University of Brawijaya Malang, East Java, on Thursday (May 3).
In the gross split scheme, operating costs become the burden of contractors of cooperation contracts (KKKS). The calculation of profit sharing in the operation of oil and gas working area (WK) between the government and contractors is taken into account in advance, he noted.
The gross split scheme is as if it has raised the part of the contractors. The production sharing scheme, in the exploration of oil and gas working areas between the government and the contractors in Indonesia, initially used the cost recovery scheme, and now, it is the gross split scheme.
It should be understood that in the Cost Recovery PSC system, the share of oil for the country is quite large, namely 85 percent. The remaining 15 percent is for the contractors (KKKS). But besides the 15 percent, the contractors will also get the cost recovery for all of their production activities, which will be cut from the state's 85 percent.
That is unlike the Gross Split PSC system. In the gross split scheme, the state will not bear the contractors' activity and production costs, including costs by operators of expensive technology. When, for example, the base split has been subdivided into 50 percent for the state and 50 percent for the contractors, then the state will no longer bear the operational costs.
With the gross split system, the share for the contractors would go up, Basri explained. However, he continued that other countries such as Mexico even give greater shares.
Mexico provides share of up to 95 percent for contractors and 5 percent for the government. While in Indonesia, contractors receive a maximum of 70 percent.
"The share offered by other countries is much more attractive, although we are now offering much more attractive shares than we have offered to contractors in the past. Yet, those offered by other countries are still far more attractive," he elaborated.
However, the government has claimed that the split gross scheme has successfully encouraged investment by foreign contractors in the oil and gas sector.
The Energy and Mineral Resources (ESDM) Ministry has revealed that investment in the oil and gas sector in Indonesia increased sharply over the past few years. The government would not adopt any policies that hamper investment.
"It is impossible for a government to hamper investment. Early this year, the ESDM Ministry streamlined business licenses, revoking 186 of them in the energy and mineral sectors," ESDM's Information and Public Cooperation Head, Agung Pribadi, pointed out.
As a result, the investment process has become smoother, and many businesses are enjoying its benefits, he added.
Several fundamental policy changes implemented in the energy and mineral resources sector in the last two years had begun to show results, he stressed.
He pointed out that 16 oil and gas working areas, with production sharing contracts under the gross split scheme, had attracted investors, whereas the auction in 2015 and in 2016, under the cost recovery scheme, did not attract a single investor.
"It is not true that there is only one contractor with the gross split system. Since January 2017, up until early in May 2018, there have been 16 working areas that received investment with the gross split scheme," Pribadi noted.
Virtually, foreign investors judge that there have been positive changes since the imposition of the gross split system.
Chevron, as an oil company operating in Indonesia, for example, also acknowledged these changes. "We have seen positive changes through revisions of ESDM Minister's regulations with regard to the implementation of the gross split system," Chuck Taylor, managing director of Chevron Indonesia Business Unit, revealed. ***3***(A014/INE)EDITED BY INE/B003
(T.A014/A/BESSR/Bustanuddin) 05-05-2018 19:17 |
Tidak ada komentar:
Posting Komentar