Prospect

Prospect Economics
Economics
 Kebijakan Fiskal
(Fiscal
(Fiscal Policy)
Policy)

• Abdoel Kadir, A.A.: “Risiko Bisnis Sektor Hulu Perminyakan,”

(Analisis Teknis & Finansial), 2004, Cet.I, Pradnya Paramita,
Jakarta, 138 hal.
 Indonesia Model
Royalty
Fiscal Contract of Work
Policy (Kontrak Karya)

Contract
Production Sharing
Contract (PSC)
Production Sharing Contract (PSC)
Technical Assisstant Contract (TAC)

Joint Operating Agreement ( JOA)

,
Joint Operating Body ( JOB)JOB-PSC
JOB-EOR

Kerja Sama Operasional (KSO)

 Royalty
• Royalty is government revenue that is subtracted from the gross
revenue.
• Figure 6.1 shows the mechanism of royalty structure from the
company point of view.

• In the Royalty mechanism, the company or investor is the owner

of the recovered hydrocarbon, and thus they are subject to pay
an amount of money called Royalty and Tax.

• One of the advances of this system the amount of royalty is rela-

tively equal for all companies and easily defined. Thus, the fiscal
regime is easily determined.
 Usually in the form
Royalty Of Profit Tax (Pajak
Keuntungan) or
Mechanism Surplus profit tax or
Secondary taxes
 Production Sharing Contract (PSC)
• Contrary to the Royalty system, in this PSC system, the owner of
the hydrocarbon is the government.

• In this case, the investor (who does not own the hydrocarbon) is
presumed to earn fee of their work to discover hydrocarbon.
 PSC
Mechanism

NCF = Net Cash Flow

• First Tranche Petroleum (FTP) is the oil and gas
shared by the parties in PSC before the cost
recovery.
• Usually the FTP shared is between 10% - 20% of
production. The FTP mechanism was applied for
the first time in 1988 for Indonesian PSC.
• For some oil and gas practitioners, FTP is treated
as Quasi-Royalty.
• Pengertian FTP secara yuridis dapat ditemukan dalam
Pasal 1 angka 6 Peraturan Pemerintah Nomor 79 Tahun
2010 tentang Biaya Operasi Yang Dapat Dikembalikan dan
Perlakuan Pajak Penghasilan di Bidang Hulu Minyak dan
Gas Bumi, yaitu:

• “sejumlah tertentu minyak mentah dan/atau gas bumi

yang diproduksi dari suatu wilayah kerja dalam satu
tahun kalender, yang dapat diambil oleh Badan Pelak-
sana dan/atau kontraktor dalam tiap tahun kalender,
sebelum dikurangi biaya operasi dan penanganan pro-
duksi (own use)”.
Indonesian
PSC
Mechanism
Cash Flow
In PSC
Cash Flow In
PSC-IP 10%
Cash Flow
In PSC-PPI
 JOA
Contract
 JOA
Mechanism
 EOR
Contract
Splitting Secondary Oil in JOB-EOR
 JOB-EOR
Mechanism
 Key
Elements
In TAC
 TAC
Mechanism
(Exploration)
 KSO REVENUE DISTRIBUTION FOR PRODUCTION MODEL
Mechanism GROSS REV

NSO INCREMENT
REVENUE REVENUE
COST REC
GOV PTM EP
32.77% 67.23% ETS
GOV PTM EP
DMO INCREMENTAL
25% 32.77% 67.23%

PTM PARTNER
PORTION PORTION

DMO FEE DMO

25% DMO
100%
DMO FEE DMO FEE
100%
TAX TAXABLE
INCOME TAXABLE
40.5% TAX INCOME
40.5%
TAX
40.5%

GOV PTM GOV PTM PARTNER

TAKE TAKE TAKE TAKE TAKE
80% of Incremental
Revenue
Flow of Revenue Distribution Scheme
(Production)
The E n d
 KSO REVENUE DISTRIBUTION FOR PRODUCTION MODEL
Mechanism GROSS REV

NSO INCREMENT
REVENUE REVENUE
COST REC
GOV PTM EP
32.77% 67.23% ETS
GOV PTM EP
DMO INCREMENTAL
25% 32.77% 67.23%

PTM PARTNER
PORTION PORTION

DMO FEE DMO

25% DMO
100%
DMO FEE DMO FEE
100% TAXABL
TAX E TAXABL
INCOME E
40.5% TAX INCOME
40.5%
TAX
40.5%

GOV PTM GOV PTM PARTNER

TAKE TAKE TAKE TAKE TAKE
80% of Incremental
Revenue